According to Kurdish statements, three people were killed in a Turkish drone attack near a refugee camp in the northern Iraqi city of Machmur.
That said Sirwan Barsani, commander of the Kurdish Peshmerga, the news portal Rudaw.
The Iraqi Presidential Office assessed the attack as a "serious escalation that endangers the lives of citizens and refugees," as the state news agency INA announced on Sunday.
Around 12,000 people are housed in the Machmur refugee camp, which is supported by the United Nations.
A Turkish drone allegedly attacked the camp around a year ago, killing two women.
The government in Baghdad then appointed the Turkish ambassador.
The Turkish President Recep Tayyip Erdogan wrote on Twitter on Sunday: The high-ranking leader of the banned Kurdish Workers' Party PKK von Machmur, Selman Bozkir, was "neutralized yesterday by the heroes of our National Secret Service Organization".
"We will not allow the treacherous and separatist organization to use Machmur as a breeding ground for terror and will continue to nip terror in the bud," the president continued.
The Turkish government and the PKK have been fighting each other for decades. The PKK is a terrorist organization in Turkey, Europe and the USA. The conflict, which has been going on since 1984, has already killed tens of thousands of people. Since the failure of a ceasefire in the summer of 2015, the Turkish military has been launching regular attacks against the PKK in northern Iraq and southeastern Turkey. The PKK, in turn, carries out attacks.