Troops on sustained clearance operations between Rann and Gamboru-Ngala in Borno State made contact with terrorists at a location near Manawaji, close to the Cameroon border.
What followed was a fierce firefight and the military says ten terrorists were killed during the battle.
Weapons and ammunition were recovered from the scene, including anti-aircraft rounds believed to have been looted from an earlier attack on a Cameroon Defence Force position.
Military sources say the recovered ordnance points to growing cross-border collaboration among insurgent groups operating in the Lake Chad Basin.
Security has now been reinforced in the area as troops continue aggressive patrols to root out remaining threats.
