The Police in Gombe State on Friday shot dead seven suspected members of the Islamist sect, Boko Haram, during a clash.
The clash lasted two hours, according to the Gombe Police spokesman Fwaje Atajiri.
However, the claim could not be independently confirmed.
The clash came 24 hours after members of the sect swooped on Damboa, Borno State, killing 11 people.
The terrorists, according to a report, attacked soldiers, burned shops and killed residents.
A military source said: "More troops have been dispatched to the area to confront the insurgents. They sneaked away towards the bush leading to parts of Yobe and Gombe states."
Around 50 gunmen in cars and motorbikes stormed the rural town, forcing hundreds of residents to flee to hide in nearby farms, locals said.
The insurgency was initially weakened in the weeks immediately following the declaration of a state of emergency in Adamawa, Borno and Yobe in May, but remains active and there has been an uptick in violence in the past month.
