Taliban militants have attacked a foreign guesthouse in Kabul's embassy district, causing several casualties.

Initial reports suggested that the Spanish embassy was under attack, but Spain's prime minister Mariano Rajoy denied this.

He later added that one Spanish police officer died in the attack.

The Taliban say their fighters detonated a car bomb in the Sherpur area and were currently inside a building there.

It is the latest in a series of audacious raids by Taliban fighters on high-profile targets in Afghanistan.

Casualties have been brought in to a nearby hospital, and eyewitnesses say a gun battle is still under way.

Eyewitnesses reported hearing a loud explosion followed by heavy gunfire on Friday evening.

Fresh gunfire and explosions were heard early on Saturday morning.

It follows a Taliban attack on Kandahar airport on Tuesday evening in which at least 50 people were killed.