A blast inside a Kabul compound owned by a contractor working for the Afghan army killed one person and wounded 15 more, police and witnesses said.

Initial reports said one person had been killed and 15 wounded, Kabul police said. The blast happened on Monday inside a large compound on the Jalalabad road heading east from the capital which is owned by a company contracted to provide supplies for the Afghan army, an AFP reporter at the scene said.

There were signs of a huge explosion on a road within the compound he said.

It was not immediately clear what caused the blast.

A spokesman for NATO's International Security Assistance Force confirmed that there had been an explosion but said it was not at NATO's Camp Phoenix, which is also on the Jalalabad road.

In May, Taliban bombers attacked a heavily fortified guest house used by Westerners in the same area.

Seven people were killed after attackers disguised in burqas detonated a suicide car bomb and clashed with guards at the "Green Village" complex used by the European Union, the United Nations and aid groups.