ITC Pangsha, along the Indo-Myanmar border, is about 290 km from the state capital.
Police officers in Tuensang said the encounter took place at around 2 PM and lasted for several hours.
Senior officials from Tuensang District Administration and Police have rushed to the spot.
An Assam Rifles spokesman said at least seven cadres of the NSCN(K) were killed in the exchange of fire between the security forces and the rebel outfit.
As the security personnel asked the motorcycle to stop for checking, there was intense firing from the Gypsy and Bolero vehicles following the two-wheeler, the spokesman said.
The security forces retaliated and in the ensuing firefight, seven NSCN(K) cadres were killed and four others, including an Assam Rifles jawan, were injured.
The Assam Rifles spokesman said a huge quantity of arms and ammunition has also been recovered from the slain militants.
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