The explosion happened in the Shash Darak area of Kabul (Picture: Xinhua/PA).
A large car bomb has rocked part of the Afghan capital near a neighbourhood that is home to the NATO Resolute Support mission where British troops are currently deployed.
At least ten people were killed and another 42 were wounded by the explosion in eastern Kabul, according to a spokesperson
The attack also happened close to the US embassy, in what is the second major blast in the Afghan capital this week.
British soldiers were at the scene retrieving what appeared to be the remains of a NATO vehicle, according to Press Association.
It comes as a US envoy has been in the city briefing Afghan officials on a US-Taliban deal "in principle" to end America's longest war.
The UK currently has around 1,000 British troops in Afghanistan, as part of the NATO Resolute Support mission.
Troops are based in Kabul, providing protection to coalition advisors in the city as well as training, advising and mentoring the Afghan security forces.
Firdaus Faramarz, a spokesman for Kabul's police chief, said the attack appeared to target a checkpoint in the heavily guarded Shash Darak area where the Afghan national security authorities have offices.
Interior Ministry spokesman Nasrat Rahimi said a car bomb had exploded on a main road and police were sealing off the area.
No one has immediately claimed responsibility for the attack.
A Taliban suicide bombing in eastern Kabul on Monday night, which the insurgents said targeted a foreign compound, killed at least 16 people and wounded more than 100.
The Afghan government has expressed serious concerns about the US-Taliban deal which still requires the approval of US President Donald Trump.
Thursday's blast occurred as Afghan presidential adviser Waheed Omer was speaking to reporters.
He warned difficult days were ahead and described the deal as moving with "excessive speed".