Villagers at Musa Qala -- a district center in Helmand Province -- said about 300 Taliban fighters remained in the town.

A tribal elder said they were digging trenches and laying mines in anticipation of an attack by NATO-led troops and Afghan security forces.

Earlier, Afghan government and NATO forces said they killed 10 militants in fighting elsewhere in Helmand Province.

Police chief Ghulam Nabi Mulakhel said there were no casualties among Afghan government or NATO troops in Thursday's (February 8) battle.