There was an exchange of fire between the two groups and no casualties were reported, according to the Khumi Media Group.
A resident in Pyin-chaung-wa village said on condition of anonymity that the fighting had taken place and that three AA soldiers reportedly had surrendered themselves to the Burma Army.
AA soldiers had arrested dozens of Chin villagers and forcibly used them as their guide when they were on patrol in the area.
Yesterday, more than 30 Chin detainees, including women, were released. The KMG said that it had not got detailed information and not been able to know how many more were still being kept in custody by the Arakan Army.
Since March last year, AA soldiers have been patrolling in Paletwa area and clashing with Burma Army soldiers on several occasions, forcing hundreds of villagers to flee their places into hiding.
Some critics said that the AA wanted to send a signal to the Union authorities and one of the ways was to make noises by clashing with the Tatmadaw soldiers and giving pressure to the local residents.
The Union government did not invite the AA in the nationwide ceasefire process, including the recent Union Peace Conference held in Nay Pyi Taw, and turned down its offer of dialogue.
Founded on 10 April 2009 and currently headquartered in Kachin State, the Arakan Army was established to protect the people of Arakan and to promote peace, justice, freedom and development in Arakan State, according to its official website.#