The earlier toll stood at 23 rebels and 12 soldiers.

Clashes erupted after a large group of Kurdistan Workers' Party (PKK) rebels infiltrated from northern Iraq and attacked the soldiers shortly after midnight Saturday, said a statement on the general staff's Internet site.

Sixteen Turkish soldiers were wounded in the fighting in a mountainous zone near the village of Daglica, in a region abutting the Iraqi border in the province of Hakkari.

In a brief second statement, the army said 32 Kurdish rebels had been killed as of 4:30 pm (1330 GMT) and fighting was continuing with helicopters providing cover for army units.

"Units are monitoring the escape routes of the terrorists" and heavy artillery is pounding "63 likely targets in coordination with the troop movements," the statement said.