The city is frequently targeted by Boko Haram militants although early indications are that this may be bigger than recent attacks.
The attack started during the evening call to prayer.
Local residents and media sources in Maiduguri reported hearing gun shots and explosions in the area of Jiddari Polo on the outskirts of the city.
According to AFP news agency, heavily armed Boko Haram fighters attempted to storm a local barracks where other members of the militia are being held.
Residents describe scenes of panic as people try and flee the scene of the attack.
The army said they repelled the attack in a joint effort by the armed forces, local police and civilian militias. As of last night they were pursuing the militants. They encouraged those who fled to return home and report anything suspicious.
It is still not known how many people died in the fight.
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