Rapid Action Battalion (RAB) has cordoned off the suspected hideout as there are four to five terrorists inside the house.
"We have cordoned off the house based on the information from our intelligence. We have asked them to surrender, but some male voices replied with slang words," The Dhaka Tribune quoted RAB 4 Commanding Officer Additional Deputy Inspector General (DIG) Lutful Kabir, as saying.
Authorities have already imposed a restriction on movement of vehicles and pedestrians around the terror hideout which is now under siege by the security forces. The residents of the area have been evacuated.
"We are intensively monitoring the situation and will conduct the operation at dawn if the militants do not surrender," Kabir said.
The militants fired gunshots from inside of the hideout and also hurled grenades targetting the elite force members.
RAB Media Wing Director Commander Mufti Mahmud Khan said, "We are trying to make them surrender. We are still not sure about which militant outfit they belong." (ANI)