Militants in police uniform on Tuesday attacked an army artillery unit in Nagrota on the outskirts of the city, killing seven Army personnel, including two officers, and leaving several others injured.

There were unconfirmed reports that four militants were killed in the ensuing gunfight. A senior Army officer said that heavily-armed militants in police uniform stormed the 166 artillery unit, opening indiscriminate fire.

There was hostage-like situation at Nagrota army camp but all the 12 soldiers, two ladies and two children held captive, were successfully rescued, says Army.

Nagrota is the headquarters of the Army's 16 corps. In view of the attack, the Jammu-Srinagar National Highway has been closed for traffic in the area.

The district administration has closed all schools in Nagorta tehsil as a precautionary measure. "We have ordered closure of all schools and education institutions in Nagrota tehsil in view of the terror attack", Deputy Commissioner, Jammu, Simrandeep Singh said.

An alert has been sounded in Jammu city.