The clash began Wednesday and wound down Thursday occurred in Shaltalo town in upper Dir district. Upper Dir lies just outside the tribal belt, but it has too witnessed militants activity and been focused of military offensives.
Police said some 200 militants crossed over into Pakistan from Afghanistan, and went after a checkpoint manned but police and paramilitary troops.
The situation is under control as of noon Thursday, and funerals are being arranged for the dead security forces, he said.