Soldiers shot dead two suspected drug smugglers in a gun fight in northern Thailand.

Authorities tightened security along Thailand's border with Myanmar when they received a tip about an incoming drug shipment being smuggled near the Mae Chan and Mae Fah Luang districts of Chiang Rai province.

Police and soldiers were deployed to intercept the contraband.

The team then encountered a group of 10 men carrying sacks through a field near the mountains on January 6.

When ordered to stop, the men allegedly opened fire on the officers, sparking a gun fight. Two suspected smugglers were killed in the shooting, while the others fled leaving behind eight bags believed to contain drugs.

No soldiers or cops were reported injured.

The area has been cordoned off for further inspection.

Thailand has become a notorious hub for drug production and trafficking. In the north of the country, the ‘Golden Triangle' area shares borders with Laos and Myanmar, and has produced large amounts of opium since the 1950s but focus in recent years has shifted to the more profitable methamphetamine.

Officials believe most of the meth is produced in the Shan State of Myanmar before being distributed through neighbouring countries where prices are higher before ending up in the most expensive markets of Australia, Japan, Hong Kong, Taiwan, and Singapore.