Militants linked to ISIL had plans to carry out the attack on Park Mall in Setif, located about 300 kilometers (186 miles) South of the capital, Algiers, El Massa reported.
The mall is frequented by people during the holy month of Ramadan, saying it attracts about 40,000 shoppers a year.
The report said the group behind the plot had lost eight key members in a clash with the Algerian army in late May near Setif, adding that the group was linked to the ISIL terrorists operating in neighboring Libya.
The group was also planning other attacks during Ramadan, but the government managed to foil them, the report said.
Algeria has seen cases of attacks since militancy began to grip parts of the Middle East and North Africa. The oil-rich country was once the scene of civil war in the 1990s, in the form of a bloody confrontation between militants and the government, which left more than 200,000 people killed.
A peace and reconciliation charter was signed in 2005, but attacks have continued frequently.
farsnews.com