The announcement made at a meeting Chief Minister Ghulam Nabi Azad had with Civil Aviation Minister Praful Patel in New Delhi on Wednesday.
The announcement is significant as it meets the long-pending demand of the state government in the context of Kashmir being a world tourist destination.
The decision is set to facilitate foreign tourists to land and depart directly from Srinagar without any interruption on their tour itinerary.
To start with, flights will be operated to and from the Gulf countries, according to an official spokesman.
Azad requested Patel to operate international flights to and from Srinagar from this summer which was agreed to.
The chairman of AAI assured Azad and Patel that the new international airport terminal at Srinagar will be ready by June 2008.
The building will handle 500 domestic and 450 international passengers per hour. The airport will have four aero bridges while five more aircraft parking bays are also proposed.
The runway of the Jammu Airport will be extended up to 9000 ft from the existing 6700 ft.
It was also agreed that a new terminal building will be constructed at Jammu airport costing more than Rs 100 crore.
The ministry also agreed to the Chief Minister's proposal for constructing a new terminal building at Leh Airport in Ladakh region.
The new building will be constructed at a cost more than Rs 100 crore with extension in the built up area from the existing 2500 sq mt to 12,000 sq mt.