SRINAGAR, India, Oct 3 (Reuters) - Two Indian army officers and nine separatist guerrillas were killed in Indian Kashmir in the bloodiest gun battle in the revolt-torn region in months, an army spokesman said on Wednesday. The fighting began on Tuesday near the forests of Tangmarg when soldiers, acting on tip off, cordoned a village and asked militants, believed to be hiding there, to surrender. The rebels opened fire, triggering a fierce gunbattle, the army said. "The exchange of fire has stopped, soldiers are searching the area," army spokesman Lieutenant-Colonel A.K. Mathur said. Four soldiers and a civilian were wounded in the gun battle which also damaged several houses, he added. Tangmarg is a popular tourist resort 45 km (30 miles) west of Srinagar, Kashmir's summer capital. Officials say violence levels have fallen significantly in Kashmir since India and Pakistan, both of whom claim the region in full but rule it in parts, began peace talks in 2004. But the dialogue has made slow progress in resolving the 60-year territorial dispute over the Muslim-majority region. More than 42,000 people have been killed in Kashmir after a revolt against Indian rule broke out in 1989, officials say. Human rights groups put the toll at about 60,000.