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The group, Al-Qaeda in North Africa, was planning a "spectacular operation", according to unnamed military sources.
Security forces reportedly swooped 30 miles (45km) east of Algiers, near Sidi Yahia town in the Boumerdes region.
The militant group previously claimed an attack last December on UN offices in Algiers, which left 37 people dead.
Security officials did not specify the day in the last week on which they said the raids had been carried out.
Al-Qaeda in North Africa sprouted from a local insurgency movement, the Salafist Group for Call and Combat.
Algeria has been fighting an Islamist insurgency since 1992, when the army cancelled elections to stave off a likely victory by a now-banned fundamentalist party.
(BBC)
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