Yemeni government officials claim two al-Qaeda militants thought be behind threats against the United States have been killed.
The suspects were shot dead in ongoing clashes between security forces and rebels.
Yemen, facing a Shi’ite Muslim insurgency in the north and separatist protests in the south, says it will not tolerate militant groups in its territory.
A barrage of airstrikes by neighbouring Saudi Arabia against the Yemeni rebels has also left up to 16 suspected militants dead.
It comes amid warnings from Washington and London that Yemen is fast becoming an al Qaeda haven.
To discuss the growing danger, the US military chief in the region, General David Petraeus has been in Sanaa for talks with President Ali Abdallah Saleh. Yemen will receive more cash from the US to fight terrorism than any other country this year.
Meanwhile, both the British and American embassies will remain shut for a second successive day after the US said it had intelligence al Qaeda was planning an attack.