Taiz: Seven suspected Al Qaida militants were killed in an apparent US drone strike on the Yemeni port city of Mukalla which the militants overran earlier this month, a local official said Wednesday.

The overnight strike hit a vehicle parked near the presidential palace in Mukalla, capital of Hadramout province, witnesses said.

The United States, whose intelligence agencies consider the Yemen-based Al Qaida in the Arabian Peninsula (AQAP) to be the most dangerous branch of the militant network, is the only country that operates drones over the war-torn country.

On April 14, AQAP announced the death of one of its ideological leaders, Ebrahim Al Rubaish, in a similar drone strike in Hadramout.

Al Qaida has exploited fighting between rebels and beleaguered government forces backed by a Saudi-led coalition to consolidate its grip on the southeastern province.

US Defence Secretary Ashton Carter has acknowledged that Al Qaida is gaining ground but has vowed that Washington will keep up its battle against the group.