Islamabad  - Four people were killed on Wednesday in fighting between Taliban militants and local residents in Peshawar, the capital of Pakistan's North Western frontier Province (NWFP), police said.

The fighting broke out when around 50 militants attacked the house of a local mayor Abdul Malik in Matni area.

"The relatives of Mr Malik exchanged fire with the militants for over three hours and repulsed the attack," said a police investigator Riaz Khan.

Two Islamic insurgents and two locals were among the dead. The mayor, his wife and two more people were injured in the crossfire, he added.

Peshawar has seen an increase in violence in recent months as government forces backed by warplanes and artillery carry out major offensives against al-Qaeda and Taliban fighters around the city and in its neighbouring tribal districts.

Earlier this month, a US aid worker was gunned down by militants who are still holding two Afghan and Iranian envoys kidnapped from the town weeks ago.

Four rockets fired by suspected Taliban insurgents landed in two residential areas late Tuesday, creating panic and fear among the residents though there were no casualties.

"This is a response from militants to the ongoing security operations around Peshawar. But we will soon control the situation," said Alim Zeb, a lawmaker whose Awami National Party governs the restive province. (dpa)