The attack occurred in Kerawa, near areas of Nigeria recently taken over by Boko Haram. The group's five-year insurgency in Nigeria has left thousands dead, and the Islamists have occasionally carried out attacks over the border.
The nearby Mandara mountains have been used as a hideout by Boko Haram members.
"Boko Haram attacked Kerawa around 4:00 am (0830 IST)," a police officer in the region said on condition of anonymity.
He said gun battles between the extremists and soldiers rocked the area until around 10:00 am.
Cameroon has reinforced its military presence in the region in a bid to stop an escalation in attacks by Boko Haram. On October 17, the military claimed to have killed 107 Islamists during intense fighting that also left eight soldiers dead.
Ten Chinese and 17 local hostages were kidnapped earlier this year in Cameroon in raids blamed on Boko Haram. They were released last month.
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