Algerian army launched a military raid on ISIS related militants as they [ISIS] gathered to hold a meeting in the east of the capital on Tuesday, the Defense Ministry officials told the state news agency APS.
According to Reuters, fighters were both al Qaeda and ISIS-linked and mostly based in northern mountainous areas.
APS, quoting a ministry statement, said the operation took place east of Algiers near Bouira, which was part of a region long a stronghold for militants during the war that left 200,000 people dead.
"This is a major counter-terrorism operation, the largest in terms of militants killed in years," a security source told Reuters.
"They were holding a meeting at the time," he added.
The army was still pursuing other members of the group, but the APS statement did not give further details or mention the affiliation of the fighters involved.
ISIS militants kidnapped and killed a French tourist in the mountains east of Algiers in September last year. Since then, Algerian security forces have carried out increased security operations in the region.
Since ending Algeria's decade-long 1990's war with rebels, Algeria is a partner of the Western campaign against insurgencies across North Africa, especially with turmoil in parts of northern Mali and Libya.