The militants were killed during exchange of fire in the New Valley governorate, 731 kilometers southwest of Cairo.
The police received information about terrorists. When they arrived, it led to exchange of fire, resulting in killing of 12 militants, the official from the Ministry of Interior was quoted as saying by the state-run MENA news agency.
The official said firearms and ammunition were also confiscated from the militants.
Last week, 16 policemen were killed and 13 others injured in clashes with terrorists in el-Wahat dessert in Giza.
Hundreds of police and army personnel have been killed since then.
The military has launched security campaigns in Egypt's restive North Sinai province, arrested suspects and demolished hideouts that belong to terrorists, including those facilitating tunnels leading to the Gaza Strip.
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