Egypt's interior ministry said in a statement on Monday that police had killed nine terrorists near the Assiut-Sohag desert highway.
The statement said that the police forces foiled hostile operations that a group of terrorists was planning to carry out.
The suspects were located in a cave in an area off the highway, in the province of El-Ghanayem.
The ministry said they possessed weapons and explosives, and were planning to carry out hostile operations targeting vital institutions.
The interior ministry added it coordinated with the supreme state security prosecution to raid the cave.
A shoot-out between police forces and the terrorists took place, leaving nine of the terrorists dead, the ministry said.
The forces also found weapons, ammunition, explosive devices, and some planning papers.