Attack was carried out against the village of Kyauk Ni Maw on the island of Ramree.
Ramree is controlled by the separatist group Arakanese Army (AA), which consists of minority groups in Myanmar. The group's goal is independence for the Rakhine province in the west, where Ramree is located.
All the dead were civilians. Among the dead and injured are women and children, says Khaing Thukha, a spokesperson for AA, to AP.
A local aid organization and media in the area are reporting similar information.
More than 500 houses are said to have been set on fire during the attack, which is reported to have occurred on Wednesday.
It is not known why the village was attacked and the military has not announced that it carried out any attack in the area.
The reports have not been able to be confirmed by an independent party as the internet and telephone connection in the area is largely out of service.
