According to ISPR, the in-fighting broke out between militant groups during army’s clearance operation. Two soldiers were also martyred during the shoot-out. Their funeral prayers were offered in Peshawar.
Meanwhile, at least 13 militants were killed in air strikes near Afghan border on Sunday.
The strikes were mounted in Khyber district where the Taliban and another banned militant group the Lashkar-e-Islam have taken refuge, the military said in a statement.
It said 10 militant hideouts and an ammunition depot were also destroyed.
The military said the commander who was killed was known for his training of suicide bombers, but it did not disclose his name or nationality.