Government forces launched yesterday an assault to recapture the coastal Dhubab district, just 30 kilometres north of Bab al-Mandab which links the Red Sea and the Indian Ocean.
Since then at least 55 Huthis have been killed in fighting and 72 others wounded, military and medical sources said.
Clashes since yesterday have also killed 13 loyalists forces, including an army general, Brigadier-General Abdul Aziz al-Majidi, a loyalist commander, told AFP.
The government and its allies in a Saudi-led coalition recaptured Bab al-Mandab strait in October 2015, pushing the Iran-backed rebels further north.
More From This Section
But the rebels still control nearly all of Yemen's Red Sea coast to the north, posing what the coalition says is a threat to international shipping.
In September and October, two US warships and a United Arab Emirates vessel contracted to the coalition were targeted by missile fire from rebel-held territory.
Pro-government troops seized Dhubab in early October 2015, but the rebels managed to recapture the area in February.