Another 20 people were injured in the shootout which started when police tried to clear the ex-rebels from blocking roads in the city of Bouake.
Mutineers who held a major road into Ivory Coast's second city of Bouake rejected a proposed deal on Monday amid a four-day military revolt over a pay dispute.
Soldiers in the Ivory Coast went a step further in their protest over a pay dispute, blocking roads leading north and south out of the city, fired their weapons in the air and patrolled the streets in stolen cars.
It's not clear if all the soldiers accepted the agreement as gunfire was heard in the capital Abidjan during the negotiations.
The soldiers seized the country's second largest city of Bouake, demanding a rise in their salaries.
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