Militants hurled grenades and fired rockets at police after officers surrounded a house following intelligence reports militants with ties to local Taliban were hiding there.

'Three militants and two policemen died in the prolonged firefight,' North West Frontier Province police chief Sharif Virk said.

He said the fighting was over now but did not give any further details.

The clash was the latest between Islamic militants and security forces in the troubled province and came a day after the reported death of top Al-Qaeda man Abu Laith al-Libbi in a US missile strike in the region.

More than 300 people have died in intensified militant-linked violence in nuclear-armed Pakistan since the start of the year.

Over 800 people died last year in more than 50 suicide attacks and other acts of sabotage mainly targetting security forces engaged in hunting Taliban and Al-Qaeda militants. -- AFP