State government spokeswoman Rocio Aguilar said the incident took place in northern Mexico's Zacatecas state.

Since 2006, the South American country has recorded more than 300,000 deaths in drug-related violence.

Aguilar said, "There were 18 dead, and the confrontation occurred in the community of San Juan Capistrano, in the municipality of Valparaiso."

She told Milenio TV that the battle was between rival gangs fighting over turf.

According to reports, a powerful cartel called Jalisco Nueva Generacion controls Jalisco state which borders Valparaiso.

The gang is trying to take control of drug trafficking routes, authorities said.

Security officials found three vehicles, one of them torched, as well as a large number of casings of different calibers, from the scene.

On Wednesday, the bodies of two police officers were found hanging from a bridge in Zacatecas, according to local media reports. It added that on the same day a series of shootouts were heard.

However, the spokeswoman said that authorities are yet to find a connection between Wednesday's discovery and Friday's gun battle.

On Friday, Mexican president Andres Manuel Lopez Obrador acknowledged the presence of security problems in the region, but stated that the government was making progress in the fight against crime.

"The state has the obligation to guarantee peace and tranquility, the security of all citizens," Lopez Obrador said in his usual morning conference.

He said the government was "making an effort" in Zacatecas, as well as similar troubled states.