Heavy fighting erupted between Jubbaland forces and Al-Shabab militants in Bula Gadud area, some 35 kilometres from the coastal city of Kismayo.
The clashes erupted after the militants detonated a roadside bomb as the Jubbaland troops passed in the area, before attacking them from different directions.
The militants claimed that they killed 10 soldiers in the fighting.
Jubbaland security forces however denied the claim and said that they had repelled the attack and inflicted heavy losses on the militants.
So far, there have been no independent reports verifying the casualties suffered by the two sides.