The officials further added the clashes started early Monday morning and is still continuing.
Provincial security chief Juma Guldi Yardam confirming the report said fight between Afghan security forces and militants started around 6:30 am and militants were still resisting Afghan security forces until evening today.
He said the incident took place after several militants equipped with heavy weapons attacked security check posts in Kajran district from Baghran area of Helmand province.
Daikundi province is among the peaceful provinces of Afghanistan however the province is neighboring volatile southern Helmand province where militants are occassionally carrying out insurgency activiites in this province.
In the meantime Mr. Yardam said at least two militants were reportedly killed and three others were injured following the clashes while three Afghan security forces were also injured.
He also said further reserve troops are prepared to be deployed to the fighting area if clashes were not ended.