Blast at foreigners' compound in Kabul

A blast has erupted near a compound housing foreign workers in Kabul, Afghan police say.

A blast has erupted in Kabul close to a compound that houses many international contractors. (AAP)

A blast has erupted in Kabul close to a compound that houses many international contractors, police say.

Police were unable to give any details of possible casualties after the blast near the "Green Village" compound in the Afghan capital, a large fortified complex where many foreign employees live and work.

"An explosion occurred near the custom office and near Green Village," Kabul police spokesman Hashmat Stanakzai said.

"We don't know if it was a suicide attack or bomb blast yet. The sound of small arms fire was also heard afterwards," he said on Wednesday.

An AFP photographer said security forces closed off nearby roads in the east of the Afghan capital.

The Green Village was also attacked last year when a Taliban suicide bomber detonated an explosives-laden car near the compound entrance.