Islamist insurgents attacked Ethiopian troops in central Somalia on Thursday as the Ethiopian army attempted to retake control of a key town, Radio Garowe reported.

At least 7 people, including civilians, have been reported dead so far and the fighting is still continuing, according to residents in Beletwein, capital of Hiran region.

The violence started after Ethiopian troops stationed at Jante Kundisho military camp advanced on Beletwein last night and captured parts of the town by early morning.

But Islamist guerillas attacked the Ethiopian soldiers, using machineguns and rocket launchers in the battle.

Local sources report that the Ethiopian army is shelling Beletwein neighborhoods that remain under the control of the Islamist militia.

There are no casualty reports available from the shelling, but many civilians are stuck in the war zone even though hundreds of families have fled to safety.

Beletwein has been tense in recent weeks, as Islamic Courts fighters took control and the Ethiopian army threatened to invade.

The region's traditional elders have been holding back-to-back meetings with Ethiopian commanders, attempting to postpone bloodshed and save civilians lives.

Gunmen loyal to the Islamic Courts movement abided by the elders' request to withdraw from the town last week, while the Ethiopian army postponed an attack on Beletwein.

Locals say the Ethiopian army's advance on Beletwein sparked today's violence, with the latest reports indicating that Ethiopian troops have taken full control of the town.

Hiran Governor Mohamed "Dhagoweyne" Ahmed, who is in Nairobi, told the BBC Somali Service that local administration is "in control" of the region.

A bloody insurgency continues to rage in Somalia despite the signing of a peace agreement on June 9 between the government and an Islamist-dominated opposition group.