Both sides exchanged fire for half an hour in a village near Hpakant. Sources confirmed the casualties and said government troops seized some weapons. The army's Northern Command has not yet confirmed the news.
San Aung from Myitkyina-based Peace Negotiator Group said, "There is no report of casualties among local residents as the fighting occurred far from the village."
He added that there were reports that the army launched the attack.
"We don't know it did so. More fighting will follow as the army doesn't stop their military operations."
Several skirmishes in Kachin state have been reported this year. In May, fighting in Sumprabum and Mansi led to casualties to both sides. Another clash was reported on October 7 in Hpakant, before another taking place between November 15-20 in Mohnyin.
According to sources from Kachin State government, a captain and a private from the army were killed near Hpakant on November 28.