Junaid-ul-Islam, chief spokesman of the Hizbul Mujahideen militant group, was arrested during a raid in a house in Srinagar, police said.

The arrest comes two days after two senior functionaries of the group were killed in a gun battle by soldiers in the troubled region.

"Hizbul Mujahideen (HM) suffers the greatest setback with its think-tank and chief ideologue being not available anymore," B. Srinivasan, a senior police officer told a news conference.

Junaid-ul-Islam, had been a spokesman for the group for the last 15 years and is group's third most influential figure, Srinivasan said. Hizbul Mujahideen is the largest and most active in Kashmir for nearly two decades.

Violence has fallen significantly across Kashmir since India and Pakistan, both of whom claim the region in full but rule it in parts, began peace talks in 2004. But people are still killed in daily shootouts and occasional bomb attacks.

Early on Thursday, two militants and a civilian were killed in a gun battle in northern Kashmir, police said.