Ten people, including seven policemen and three civilians, were killed in the explosion when they attempted to defuse a time-bomb during a raid, prosecutor Ahmed El-Tamawy was quoted as saying by Al Ahram.
The blast took place ahead of Monday's anniversary of the 2011 revolution that ousted former strongman Hosni Mubarak.
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It is yet unclear whether any of the those reportedly hiding in the apartment were injured, killed or captured.
A Lieutenant of the Central Security Forces has been killed.
In recent months, Egyptian security forces have carried out several raids on apartments where suspected or fugitive Islamists militants were reportedly either hiding or preparing for "terrorist operations".
These raids have often ended with suspects killed by police, who say they were met with gunfire upon arrival at the hideouts.
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