At least four policemen were killed in a battle with suspected Islamic State of the West African Province (ISWAP) terrorists in Gajiram, Borno state.
The incident was said to have happened around 1am on Saturday.
Zagazola Makama, a counter-insurgency publication focused on the Lake Chad region, gathered from sources that the terrorists disguised themselves and sneaked into the town at about 11am on Friday.
The suspected ISWAP terrorists were said to have gone straight to the police quarters in Gajiram town and opened fire killing four policemen.
The sources also said mobile policemen at the police quarters engaged the terrorists in a heavy gun battle which prevented the assailant from burning down the quarters.
The publication said troops from Operation Hadin Kai of Gajiram, a military intervention in the northeast, responded to the scene.
However, by the time they arrived, the terrorists had already fled.
Gajiram is located approximately 73 kilometres from the volatile Borno state capital, Maiduguri.
Gajiram has been a frequent target for extremist attacks.
Recently, troops of Operation Hadin Kai of the Nigerian Army (NA) reportedly killed 11 fighters of the Islamic State of West African Province (ISWAP) in Borno.
The troops also destroyed 25 camps of the terrorists in Sambisa forest and Timbuktu Triangle in Borno.