A fierce fighting broke out on Sunday night in Afgoye town, about 30Km northwest of the Somali capital, Mogadishu, after fighters from Al-Shabaab have raided military barracks.
Residents said the overnight attack started when militants tried to storm army outposts, and clashed with Somali Federal government forces.
As the fighting raged, both sides had used heavy and small weaponry, including rocket-propelled grenades, machine guns that could be heard across the town, and nearby areas.
There was no immediate confirmation of the casualties, as result of the fighting.
Afgoye, which is considered a strategic town as it sits on one of only two roads into the capital, has witnessed several deadly attacks from Al shabaab in the past few months.