Security forces on Tuesday morning rescued three civilians from a Srinagar [Images] hotel where militants are holed up.

Four persons were killed and 13 injured as the militants hurled grenades and opened indiscriminate fire in the busy Lal Chowk area on Monday afternoon and entered a hotel.

"We have rescued three civilians from one of the hotel buildings," a senior CRPF officer said.

While security forces believe that two militants were holed up in the area, Al-Mansoorian militant outfit, which owned responsibility for the attack, claimed their members had 'returned safely' after the attack.

CRPF Deputy Inspector-general J N Ojha said the operation to flush out militants was suspended on Monday night to avoid civilian casualties as many people are believed to have been trapped inside hotels and other establishments in the area.

"Once it is ensured that no civilian is inside, security forces will resume the operation to flush out the militants," he said.

Two CRPF personnel and two civilians were killed and 13 others, including a foreign journalist, were injured when militants struck in the area at around 1515 IST on Monday.