Niger's defence minister says government troops have recaptured the south-eastern garrison town of Diffa, and that rebel soldiers there who staged a mutiny last week have fled.

"The town of Diffa has been liberated," Sabiou Dadi Gao told local television, according to French news agency AFP.

Niger soldiers have a history of mutinies and coups

Local reports say there was sporadic gunfire in the streets, with at least one government soldier and several other people wounded in a skirmish on the town's outskirts.

Most of the mutinous soldiers reportedly fled north to other garrison posts, such as Nguigmi, and may have taken local officials with them as hostages.

Pay dispute

The soldiers mutinied on Wednesday, demanding five months' back-pay, the firing of the chief of staff, and a meeting with Prime Minister Hama Amadou.

The rebels said they were willing to negotiate, but the government refused, having sent troops to the remote region - more than 1,000 kilometres (625 miles) east of the capital, Niamey - and vowing to "crush" the rebellion.

Niger's defence minister said eight rebels had been taken prisoner, two were wounded, and that the search for others continued.

The mutineers - who had taken over two barracks in Diffa - maintain they are only seeking better conditions, and deny their action is politically motivated.

'It's a relief'

People in Diffa were relieved that a major battle in the town had been avoided.

"It's a dispute between the military. For us, the important thing is peace and the fact that the government troops haven't found the mutineers here, it's a relief," a radio operator told Reuters news agency.

More than 500 government troops with heavy artillery left Niamey for Diffa by road on Thursday to end the mutiny.

President Mamadou Tandja is from Diffa

The mutineers reportedly imposed a curfew and erected barricades at the entrance to the town.

They were also reportedly holding the regional governor, local military commanders, a member of parliament and Diffa's mayor.

Correspondents says soldiers posted to the desert region often feel isolated and ignored by the authorities in the capital.

The mutiny is the first in Niger since the 1999 election of President Mamadou Tandja, who comes from Diffa.

The landlocked former French colony - one of the poorest countries in the world - saw a spate of army mutinies in the late 1990s.