The battle, a sources said, began after Boko Haram fighters attacked troops of the 119 Task Force Battalion stationed in Kangarwa.
The Nigerian troops gallantly fought back, killing an unknown number of the attackers and injuring several others.
Nine soldiers were however injured in battle, our sources said.
On Saturday, a patrol team from Baga which went to evacuate the injured soldiers was also ambushed.
Members of the team repelled the attack and cleared the ambush, those familiar with the matter said.
It is the sixth time the battalion would be so attacked in recent times, military insiders told newsmen.
The army is yet to issue an official statement on the attack.