During clashes on Sunday two soldiers were killed, and another 20, wounded.
Government sources said that 70 Houthi rebels surrendered to government forces.
The conflict between Shia separatists and the regular Yemeni forces has been going on for the past five years.
The government has accused Houthi’s forces of trying to set up an Iranian-styled system of government, like the one that existed in the country until the 60s.
The last few months have seen an escalation in violence which locals have dubbed the “sixth War of Sa‘ada”. The two sides have failed so far to reach a lasting truce, accusing each other of violence and brutality against the population,
Houthi Shiite rebels "took advantage" of a recent cease-fire and "executed a large-scale attack on government installations" in Sa‘ada, Yemeni government sources said.
Houthi fighters have accused the military of indiscriminately attacking civilians when they attack Shia positions.
The United Nations has recently said that fighting in the area between Yemeni forces and Houthi Shia rebels has displaced 150,000 people since the latest round of fighting began on 12 August.