Finju Sherpa of TMI Nepal, an organization working for wildlife, said the pandas were spotted in Balu forest, a border of Hangetham and Mabu.
A team comprising members of TMI and Red Panda Network Nepal formed to study the condition of red pandas discovered them in the jungle.
It is said that the rare pandas are in a large number in Hangetham, Dobate, Lalbas, Kaiyakatta and other jungles in the district.
A local people, Pavitra Khavas, said a survey conducted locally estimated the number of red pandas could be up to 10. However, locals say the number could be more than that.