Three people, including two high-ranking police officers and a civilian, were killed in a shootout between police and suspected terrorists, the newspaper Tout sur l'Algerie reported Saturday, dpa reported.
Citing security sources, the online edition of the paper said the shootout took place late Friday night in the town of Rass El Oued, 200 kilometres east of the capital Algiers.
A third policeman was wounded in the shootout.
In the incident, police had surrounded the house of a suspect and were talking with the armed owner of the house when the situation escalated and the shooting began. The house owner was the civilian killed in the clash.
Since the start of the fasting month of Ramadan, at least six people have been killed in Algeria. Late Thursday, three soldiers were killed and one was wounded in an ambush.
Algeria is the chief operational area of the group al Qaeda in Islamic Maghreb. Algerian authorities insist that terrorism in the country has largely been eliminated.