Niger's army repelled an attack by Nigerian Islamist group Boko Haram on the border town of Diffa on Sunday but a suicide bomber struck in the town's market, killing at least one person and injuring several more, residents said.
It was the second attack by Boko Haram in three days on the border region of Niger, where some 2,500 Chadian troops have gathered ahead of a planned military offensive by a coalition of regional powers against the Islamist group.
Niger's parliament is due to vote on Monday on a proposal by the government to send its troops into Nigeria to help fight Boko Haram.
Residents said fighting was heard between around 6 a.m. and 10 a.m. (05:00 to 09:00 GMT) on the outskirts of the town.
"There was fighting between security forces and elements of Boko Haram who tried to enter the town," said a military source. "Fighting is taking place around the bridge at Doutchi. There are many dead."
Local residents said a suicide bomber then struck Diffa's market.
"It was a young boy who was carrying the explosives in a plastic cover," said one resident who gave his name as Aboubakar. "I saw 10 people injured and at least one dead."
Chadian forces already crossed into Nigeria last week to the south of Lake Chad to attack Boko Haram in the town of Gambaru, bordering Cameroon.
On Saturday, the governments of Cameroon, Chad, Niger, Nigeria and Benin agreed to establish an 8,700 strong regional force.
Chad has deployed some 2,500 soldiers to neighbouring Cameroon and Niger as part of this effort.
Boko Haram has seized territory in northeastern Nigeria as part of a five-year insurgency to carve out an Islamist state on the territory of Africa's top oil producer and biggest economy. About 10,000 people were killed last year.
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