Maoist rebels attacked a police post near Nepal's capital with crude bombs and automatic weapons today, killing five policemen.
The attack at Sankhu village, ten miles from Kathmandu, was the biggest assault by rebels so close to the capital since they launched a revolt in 1996 aiming to topple the constitutional monarchy.
At least 55 people have been killed in Nepal in the last week in fighting between government troops and insurgents who want to establish communist rule in one of the world's poorest countries.
"About 40 heavily armed guerrillas set up road blocks and cut off access to the post before they attacked it," a police officer said, adding that three policemen were wounded in the raid.
Residents of the ancient village said rebels told people to shut shops and close their windows before they stormed the police post. "It's feels like a dead town now," one resident said. "There are unexploded bombs, cartridges and unused bullets, clothes and helmets littered in the compound of the police post."
Security forces said reinforcements had been sent to the area and a search was under way for the attackers who fled into nearby jungles after the attack.
Violence has increased in Nepal in the run-up to a January 13th deadline set by Prime Minister Sher Bahadur Deuba for rebels to join peace talks on ending the revolt that has killed more than 10,000 people.
The rebels rejected the deadline. The rebellion has wrecked Nepal's economy, which depends on tourism and aid, and has triggered a political crisis and forced thousands of villagers to flee their homes.