Two men have been confirmed dead and several houses burned to the ground at 4-Mile in Lae City in Papua New Guinea's Morobe province.
The Post Courier newspaper quotes local police as saying the clash stemmed from an incident in a drinking bout in the weekend.
Police said fighting occurred between youths from Okapa and Lufa in Eastern Highlands living at Lufa Mountain at 4-Mile and Western Highlanders.
It caused the closure of 4-Mile market, blocking traffic until Police moved in and stopped the clashes.
The situation in the settlement remains tense.
