A popular French restaurant in downtown Kabul appears to have been targeted in a huge car bomb attack heard across the Afghan capital on New Year's Day.

Witnesses described seeing or hearing a loud explosion at the heart of a central district full of foreign embassies and government buildings.

Speaking to Reuters, a police official said the suspected car bomb had hit the Le Jardin restaurant, one of a small number of establishments still visited by foreigners.

According to a number of local media reports, the restaurant was running a special New Year's promotion at the time.

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The apparent attack was the latest in a series of bombings reported across Kabul in recent weeks, and came days after the Taliban claimed responsibility for a deadly explosion near the city's airport.

There were no initial reports on damage or casualties, as well as some conflicting reports suggesting that a government guesthouse was targeted.