"This terrorist attack against the area of Banibangou killed five soldiers, injured three and four others were reported missing," said the source, who requested anonymity.
Niger's long, porous borders make it vulnerable to the armed violence plaguing its neighbours.
A Niger official also confirmed the attack which happened around 4:00 am (local time).
Twenty-two of Niger's soldiers were killed last month when armed men who had travelled from Mali launched an attack on a refugee camp in the western Niger town of Tazalit.
Niger also faces constant raids in the south by Nigeria-based jihadist group Boko Haram.
A US aid worker was abducted from his home in central Niger last month.
Disclaimer: No Business Standard Journalist was involved in creation of this content