At least 17 people mostly civilians were killed and 46 others injured in fierce battles between Somali government forces backed by African Union peacekeepers and Islamist insurgents over control of the key position in Mogadishu, medical sources said on Thursday.

Most of the casualties were civilians hit by stray shells and bullets in areas outside the battle fronts in the south of the Somali capital, medical sources said. "Seventeen people died many of them civilians while 46 others were injured by shrapnel and bullets in areas far from where the fighting was taking place," Ali Muse, head of the local emergency service, told Xinhua.

Following fierce battles with Islamist rebels forces of the Somali government backed by AMISOM took over key positions around the northwestern part of the main Mogadishu market.

The strategic market is seen as an important hideout for the insurgents and a source of revenue to fund their attacks against the internationally recognized Somali government and the UN-back AU peacekeeping mission supporting it.

Somali government officials and commanders of the AU peacekeeping troops have reassured traders at the main Bakara market around which the latest fighting centered that the forces will ensure their commitment to the protection of lives, livelihoods and property within Bakara Market.

A major offensive by the Somali government backed by AU peacekeepers has lately been in progress in the capital as well as in southern provinces controlled by Islamist radicals, who have faced their worst losses to date.

The Al Qaeda-linked insurgent group of Al Shabaab vows to continue their attacks against targets of Somali government and AU troops, calling on civilians to stay away from the installations of the government and AU forces in Mogadishu.

The extremist group this week carried out multiple suicide attacks on AU troops in Mogadishu, killing two peacekeepers and wounding four others. Three of the four Al Shabaab attackers were killed before they detonated their explosives while the fourth escaped.