Mekelle, the capital of Ethiopia's conflict-torn Tigray region, was hit by air strikes on Monday, local broadcaster Tigrai Television reported.
Tigrai TV, controlled by the northern region's Tigrayan People's Liberation Front (TPLF), said the attack was launched by the government and killed several civilians.
"Monday is market day in Mekelle and the intention is all too palpable," TPLF spokesman Getachew Reda wrote on Twitter.
But Ethiopia's government later denied launching air strikes at the city.
"Why would the Ethiopian government attack its own city? Mekelle is an Ethiopian city," said Legesse Tulu, spokesman of the Ethiopian government.
(With input from Reuters)