Troops of the Multinational Joint Task Force (MNJTF) killed 39 Boko Haram terrorists and captured many equipment from them, an official said.
About 20 soldiers were also wounded in the battle.
The MNJTF is a coalition of soldiers of Nigeria and its neighbouring countries in the North-east such as Chad, Cameroon and Niger.
It was formed mainly to tackle Bolo Haram and other forms of criminality affecting the neighbours.
The spokesman of the task force, Timothy Antigha, confirmed the battle in a statement made available to journalists in Abuja on Wednesday.
Mr Antigha, a Nigerian colonel, said the terrorists were killed when they attacked troops position at Cross Kaura on Tuesday.
He said the wounded soldiers had been evacuated from the area of operation and now receiving adequate medical attention.
The Boko Haram attacks in North-east Nigeria have continued since 2009 despite the efforts of the military.