The mercenaries, backed by Saudi warplanes, launched a wide-scale operation against Yemeni forces in the country’s western coastline but were pushed back after the army troops dealt a severe blow to them, the source, speaking on condition of anonymity, told Saba news agency on Saturday.
More than 120 Saudi-paid militants were killed and hundreds of others wounded in the counterattack.
The Yemeni troops also destroyed five military vehicles and seized military equipment left by the mercenaries, the report added.
Yemen’s defenseless people have been under massive attacks by the coalition for more than three years but Riyadh has reached none of its objectives in Yemen so far.
Since March 2015, Saudi Arabia and some of its Arab allies have been carrying out deadly airstrikes against the Houthi Ansarullah movement in an attempt to restore power to fugitive former president Abd Rabbuh Mansour Hadi, a close ally of Riyadh.
Over 14,000 Yemenis, including thousands of women and children, have lost their lives in the deadly military campaign.