"The operation is over. Our Special Forces have killed third militant early today," army spokesman Lieutenant Colonel S D Goswami said.

Goswami said that seven hostages, including four children, their mother who sustained bullet injuries in her leg and two other persons were safe after the prolonged hostage drama and gunbattle between the security forces and militants.

However, three hostages were killed by the militants before the final assault was launched, he said.

"The final assault was lunched at 1145 p.m. last night by the special forces of the army and entire family of the house owner including four children were rescued," he said.

Ashok Kumar, a teacher and the tenant, one territorial army jawan who went inside during the operation and another person were killed, the army spokesman said.

After killing all the militants holed up inside the two-storeyed house at Chinore, 20 kms from Jammu city, the army moved in and rescued the hostages.

Thirty five-year-old Sunita Devi, the injured mother of the four children aged between two and nine, was admitted to the Government Medical College Hospital in Jammu.

The children have been identified as Sheetal (9), Vipin (2), Ashad (7) and Kajal (4). Two other captives who were rescued were the house owner's brother and sister-in-law.