Clashes between Libyan troops and militants in the eastern city of Benghazi Nov. 25 killed at least three people and wounded a dozen more during a military operation, security and medical officials said.
The army ordered residents to stay off the city streets.
Fighting broke out when an army special forces unit pursued a suspect into an area where Islamist militant group Ansar al-Sharia operates its own checkpoints, Benghazi city security officials said.
Ansar al-Sharia was blamed for the attack on the U.S. consulate in Benghazi a year ago when the U.S. ambassador and three other Americans were killed.
The chaos in Libya is worrying its neighbours and the western powers who backed the uprising that led to the fall of Gaddafi two years ago in one of the Arab Spring revolts.
Prime Minister Ali Zeidan, who was briefly abducted by a militia last month, met U.S. Secretary of State John Kerry and British Foreign Secretary William Hague in London on Sunday to discuss cooperation.