Sri Lankan troops are battling to capture the northern town of Kilinochchi, where the rebel Liberation Tigers of Tamil Eelam (LTTE) maintain their own administration, banks, police and courts.
The defence ministry said Sri Lanka fighter jets on Saturday dropped bombs on a rebel base that trains suicide bombers in Kilinochchi district.
The pro-rebel Tamilnet website, however, said the bombs fell on a civilian town, killing one person and injuring two, including a child.
The website showed pictures of the attack.
At least 52 Tamil Tiger rebels were killed on Friday in heavy fighting between troops and the guerrillas just outside the insurgents' northern capital in Sri Lanka, the defence ministry said.
Fighting along the northern region of Weli Oya and Jaffna left eight rebels and two soldiers dead, the military said.
Tamilnet said one soldier was killed when the rebels fired artillery towards the troops stationed in Jaffna on Friday.
It was not known whether the dead soldier