Boko Haram insurgents have hoisted their flag in parts of Marte local government of Borno State, military sources said.
In a report by Channels TV, the insurgents repeatedly attacked the local government within the week and captured it.
On Friday, they stepped up their attacks, by storming neighbouring Dikwa local government.
However, they were repelled by a combined effort of the air component and ground forces of Operation Lafiya Dole in a battle that lasted hours, sources said.
Many residents of Dikwa fled into bushes to take refuge, amid the cross-firing.
The insurgents also laid an ambush for the reinforcements deployed from the theatre command headquarters located in Maiduguri.
The attack on Marte came barely two months after the Borno state government resettled 500 households in New Marte. The casualty figure for the attack is still unknown.
But some soldiers injured from Marte have since been evacuated to Maiduguri for treatment.
The Chief of Army Staff has commended the troops of the Nigerian Army who repelled the attack on Dikwa, saying the soldiers gave a good account of themselves.