Sangin district had been besieged by the insurgents for weeks before an uptick in the ferocity of the fight this week sparked concerns it could fall to Taliban control.
But civilian and military officials said Sangin remained in government hands after the United States conducted two airstrikes overnight, and Afghan military helicopters dropped food and ammunition to soldiers and police who had been surrounded and trapped inside the district army base for days.
The presence of a small contingent of British troops, who arrived in the Shorab base -- formerly Britain's Camp Bastion during their Afghan combat mission -- yesterday had helped boost morale of both civilians and security forces, officials said.
Overnight, the Taliban captured parts of the center of Sangin district around the district governor's compound, but the Afghan forces, bolstered by reinforcements, soon succeeded in driving them further out, said Akhtar Muhammad, a police commander in Sangin.
"An hour later we recaptured that building and now we have it," he told The Associated Press.
In recent days, the Taliban assault has threatened to overrun Sangin, a major poppy-growing area in Helmand, raising alarm that Afghan forces were too overstretched to fend off the insurgency. The Taliban this week pronounced they had seized control of the district, but the claim was widely refuted by Afghan officials.
As the military rushed more troops to the area, Afghan officials yesterday asked for the international military coalition's help, including airstrikes.
Just before midnight, US warplanes conducted two strikes in the vicinity of Sangin, the spokesman for the NATO mission in Afghanistan, US Army Col Mike Lawhorn, said.
Afghan planes also struck Taliban strongholds in Sangin, killing 25 insurgents and wounding another 12, said the Afghan army spokesman in Helmand, Guam Rasoul Zazai.
Operations were slowed today as insurgents began taking shelter in civilian homes, he said.
Sangin is an important prize for the Taliban. It sits on crucial smuggling routes for drugs, arms and other contraband which fund the insurgency. Most of the world's heroin is made from opium produced in Helmand's poppy fields.
Afghanistan's opium output is worth up to $3 billion a year, much of it going to the Taliban which sponsors and polices its production and transport.
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