The incident occurred on the Urosevac to Strpce road near the village of Banjica, police said in a statement without giving any details. The two men who were killed were identified as Ivan Dejanovic and Aleksandar Stankovic of Novo Naselje near Lipljan.
Serb sources identified the wounded men as Aleksandar Janicijevic and Nikola Dukic.
The four men were driving from Lipljan to Strpce when they realised that they were being followed by a Mercedes car. At one point they heard a shot and felt that one of their tyres was punctured. They stopped to replace the wheel when unidentified assailants opened fire on them from the Mercedes and fled, Janicijevic told the Serb sources.
Janicijevic, who is currently in hospital and in stable condition, said that Dejanovic and Stankovic were killed instantly. The fourth man is in the intensive care unit.
A local television station said that early Sunday morning police arrested three suspects in the village of Kastanjevo near Strpce and seized their white Mercedes. The suspects were in possession of hunting rifles.