The Chadian government army has killed at least 162 rebels, arrested more than 20 others and seized over 40 military vehicles, according to military sources Wednesday.
According to news from Ndjamena, capital of Chad, the Chadian soldiers killed the rebels Tuesday in the town of Am Zoer, 760 km northeast of the capital.
The government army said "the decisive victory" signified that the new round of offensives by rebel forces since last week has been repelled, but the rebel National Alliance rejected the claims.
Rebel forces have briefly captured the towns of Goz Beida, Am Dam, Biltine, Am Zoer and said they will march further westward to seize the capital of Ndjamena.
However, the government army said by taking the towns from which they have withdrawn defense forces, the rebel forces wanted to play bravado and create chaos.
The UN Security Council condemned the attacks Monday and asked the rebel forces to end their violent activities.
In addition, the Chadian government accused Sudan of supporting the anti-government rebels, but Khartoum has denied the allegations.
On Feb. 2, rebel groups entered Ndjamena after days of advance through the country and surrounded the presidential palace. They were later repelled by government forces.