Police sources told Aljazeera that a house with suspected captors inside was raided in Karma Ali and an exchange of gunfire took place, leaving the five intelligence officers dead.
There was no word on the suspected captors inside.
Meanwhile, US and Iraqi forces clashed with armed fighters on a main Baghdad thoroughfare on Wednesday, the Interior Ministry said.
At least one explosion could be heard across the Iraqi capital. There was no immediate word on casualties.
The fighting broke out on Haifa street, the scene of fierce fighting recently, said ministry spokesman Colonel Adnan Abd Al-Rahman.
Elsewhere, US military and Iraqi security officers said on Wednesday six US soldiers and two Iraqis were wounded in a car bombing in the northern city of Mosul.
The car bomb exploded late on Tuesday as a US convoy drove near the University of Mosul, wounding six US soldiers, said spokesman Lieutenant-Colonel Paul Hastings.
Five soldiers returned to duty while one was still in hospital, he added.
Two Iraqi security guards were also wounded, said the university's security chief Lieutenant-Colonel Zulfiqar Umar Salah.
Elsewhere, a car bomb exploded and a second car bomb was defused just outside the central-eastern city of Baquba late on Tuesday, but no one was injured, the military said.