Twenty-four Malian soldiers and 17 jihadists fighters were killed in clashes in the east of the country, the army said, as security in the west African nation deteriorates further, reports AFP.
The prisoners are in the hands of Niger soldiers, the statement said.
In an earlier statement, which gave a lower death toll, the army said French and Niger forces took part in a counterattack.
Monday’s action was another heavy loss for the army, which lost a hundred soldiers in two jihadist attacks in a month in the autumn.
Northern Mali fell into the hands of jihadists in 2012 before the militants were forced out by a French-led military intervention.
Since then, however, the border regions of Mali, Niger and Burkina Faso have become the theatre of repeated clashes with jihadist fighters.