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KABUL - Taliban militants attacked a foreign guesthouse in central Kabul on Thursday, hours after a suicide bomber targeted a British embassy vehicle in a blast that killed six people, triggering fears of spiralling unrest.

Attacks across the Afghan capital have increased in recent weeks as US-led NATO forces wrap up their 13-year combat mission against Taliban insurgents at the end of this year.

Afghanistan faces a major security challenge as the NATO military presence declines with the police and army struggling to prevent attacks and suffering high casualties in the battlefield.

Two militants were killed by police inside the guesthouse and one Nepalese guard was wounded in the fighting, Kabul police spokesman Hashmat Stanakzai told AFP. Officials did not confirm which foreign guesthouse was attacked. Wazir Akbar Khan district is home to several international contractor firms, development agencies and embassies.

After an initial suicide blast, sporadic gunfire and grenade blasts erupted for at least 45 minutes as security forces fought to clear the building.

"The attack was against a foreigners' guest house," deputy interior minister Ayub Salangi told Tolo TV news. "The police have entered the building."

Police said they were searching to check whether another attacker had escaped.

Earlier in the day, another suicide bomber rammed his explosives-packed car into a British embassy vehicle in the east of the city, killing one British bodyguard and five Afghans. The Taliban used a recognised Twitter account to say they were behind both attacks.

At least eight blasts have hit Kabul over the last 10 days, including attacks on foreign compounds and on a female Afghan member of parliament who was injured in a suicide bombing that targeted her car.

A British bodyguard and an Afghan employee of the British embassy died in the blast that hit their vehicle on a stretch of road notorious for suicide attacks.

At least four Afghan bystanders were also killed, and more than 30 others injured.

British Foreign Secretary Philip Hammond condemned the attack on the embassy vehicle as "senseless and cowardly".

"It reminds us once again of the risks our personnel take every day to keep trying to help Afghans build a better future -- and by helping them do so, protect our own security and own interests," he told a press conference in Rome.

A second member of the British embassy's security team was injured in the bombing, which threw the 4x4 vehicle onto its side. The roof was blown off and car parts scattered across the Jalalabad road, a main route where many fortified compounds and military facilities are located.

At the site, an AFP reporter saw one badly-shaken foreign passenger talking to Afghan police, asking after his colleagues.

A nearby policeman said that passengers covered in blood had been taken to hospital. Afghanistan suffered its deadliest attack of 2014 on Sunday when a suicide bomber struck at a volleyball match in the eastern province of Paktika, killing 57 people.

About 12,500 foreign troops are set to stay on into 2015 after the NATO combat mission ends, to train and support the Afghan army and police.

The Afghan parliament on Thursday passed long-delayed legislation allowing the NATO support mission next year.

President Ashraf Ghani, who came to power in September, has vowed to bring peace to Afghanistan after decades of conflict, saying he is open to talks with the Taliban, who ruled Kabul from 1996 to 2001.

Ghani finally emerged as president after signing a power-sharing deal with his poll rival Abdullah Abdullah.

Both men claimed to have won fraud-tainted elections in a prolonged stand-off that caused political paralysis in Kabul and fuelled worsening violence nationwide.

Britain hosts a major donor conference on Afghanistan next week, which is designed to showcase Ghani's "national unity government" and demonstrate continuing international support for the country.