Baga clashes: Nigeria army seizes heavy weapons
It says 37 people were killed, while others maintain at least 185 died.
The army says 30 members of the Boko Haram Islamist group, one soldier and six civilians died.
The Red Cross has backed local officials who say the figure is higher but they have not been into the town.
An army statement said three rocket-propelled grenade launchers had been recovered, along with bomb-making material.
The previous most deadly incident of the three-year Boko Haram uprising came last year when at least 160 people were killed in co-ordinated bomb attacks in the northern city of Kano.
The group is fighting to install Islamic law in the predominantly Muslim north of Nigeria.
Sniffed: BBC Africa
Baga clashes: Nigeria army seizes heavy weapons
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