Prime Minister Kevin Rudd has paid tribute to nine soldiers who were wounded in battle, one of whom has life-threatening injuries, and said the Government remains committed to restoring peace in Afghanistan.

The troops were members of a Special Operations Task Group (SOTG) detachment fighting an overnight battle with the Taliban in Uruzgan province.

It is the largest number of casualties in a single combat incident suffered by Australian troops since the Vietnam war.

Mr Rudd has told Parliament the operation is still continuing and says Australia will continue to help Afghanistan in the fight against the Taliban.

"The Australian Government remains committed to assisting the people of Afghanistan and their democratically elected Government to achieve a measure of the stability and prosperity that we take for granted in our country," he said.

"Our adversaries should take heed of the resolve of Australia's soldiers, the resolve of the Australian Government and the resolve of the Australian people in bringing to an end this unsustainable instability and conflict in Afghanistan.

"On behalf of all Australians let me say our thoughts and our prayers are with the wounded soldiers, their comrades in the field of battle, their families and their loved ones."

Opposition Leader Brendan Nelson also paid tribute to the wounded troops and their families and agreed with the Prime Minister's comments.

"I join with the Prime Minister in ensuring that the political will and resolve of this Parliament will remain as firm as it has ever been to see this through and see that we are able to liberate the people of Afghanistan," he said.

Mr Rudd said those still involved in the operation were undertaking essential but dangerous work which was part of a vital mission.

"The Taliban can never again be allowed to use Afghanistan as a training ground, a hiding place or a launching pad for terrorist operations around the world," he said.

Five of the soldiers have serious wounds and three others have slight wounds, while one is seriously injured.

The Defence Director-General of Public Affairs, Brigadier Brian Dawson, says the soldiers were wounded by gunfire and grenades.

They were in vehicles at the time of the attack and were evacuated within two hours for further treatment.

Brigadier Dawson says the troops are performing exceptionally well but more fighting can be expected .

"We are of course in the midst of fighting season in Afghanistan," he said.

"With winter approaching, Taliban extremists are stepping up their activity across the country before the snow falls and the poor weather limits further operations."

Earlier today Chief of the Defence Air Chief Marshal Angus Houston confirmed the troops were ambushed.

"It's a very dangerous place and we were involved in an activity with other forces, and I guess we were ambushed and this is what happened," he said.

The incident follows the death in July of 25-year-old SAS Signaller Sean McCarthy, the sixth Australian soldier to die in theatre in Afghanistan.