They are now believed to be hiding in the family quarters inside the camp.
M Ashraf Mir and Madan Lal lost their lives in the attack launched by a group of four-five heavily-armed Jaish-e-Mohammed terrorists.
"Three army men including a JCO and his daughter were injured in the militant and evacuated to hospital". Two people have been injured, one Hawaldar and his daughter.
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The camp is located in a busy area where shopping markets, showrooms, and private schools are situated.
A police team has been deployed to cordon off the area as the gunbattle is still going on.
According to the reports, gun shorts and blasts were heard from the army camp in Sanjwan and quick reaction teams (QRTs) rushed to the spot, and the army camp was cordoned off by security forces. "The operation is on", Jammu Inspector General of Police SD Singh Jamwal was quoted as saying by news agency of ANI.
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It is also the second attack on army installation in Jammu in two years.
"Around 4.55am, suspicious movement was noticed by the santri". In 2006, terrorists carried out a suicide attack at the camp in which 12 soldiers were martyred.
Dr Shahid Iqbal Choudhary, District Development Commissioner, Rajouri, tweeted, "Terror attack in heart of Jammu city is a worrisome development".
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There were intelligence inputs that Jaish-e-Muhammad (JeM) militants were planning to carry out an attack around the 5th death anniversary of Parliament attack convict, Afzal Guru, who was hanged on February 9, 2013 in Tihar Jail, informed sources in the police said.