The toll rose to three after a soldier succumbed to his injuries in hospital several hours after the clashes in Sirnak province, a statement posted on the army's web site said.

Two other soldiers were wounded in the clashes, which erupted in a mountainous area close to the Iraqi border when the security forces came upon a group of rebels from the outlawed Kurdistan Workers' Party (PKK).

The operation to hunt down the militants was continuing, military sources said.

A government-armed militia, made up of local Kurds and called the "village guard", has for years backed up the army in its struggle against the rebels.

The PKK, listed as a terrorist group by Turkey and much of the international community, took up arms against Ankara in 1984, sparking a conflict that has claimed about 45,000 lives.