Manila - Three drug suspects were killed in a shootout with police officers in a southern Philippine town, a police report said Saturday.

The report said three police officers were also wounded in the shootout late Friday in Compostela town in Compostela Valley province, 990 kilometres south of Manila.

A team of police officers raided a suspected drug lair in the village of Osmena but were fired upon by the suspects, triggering a shootout.

One of the suspects lobbed a hand grenade which exploded near the area where the police officers were seeking cover, injuring three officers. (dpa)