An explosion has shaken the German consulate in Afghanistan, a NATO spokesman has said, with reports of a gun battle ensuing.

The blast happened in front of the building in the northern city of Mazari-i-Sharif - with the Taliban issuing a statement claiming they had sent suicide bombers to the consulate to carry out the attack.

Residents reported hearing a "huge explosion" which shattered windows in the surrounding buildings.

Walter Hassmann, the German ambassador to Afghanistan, said the "incident is ongoing" but would not confirm any further details.

There were no immediate reports of any casualties.