A group of insurgents stormed the Intercontinental Hotel in Bagh-e-Bala area in Kabul city on Saturday evening.
According to interior ministry spokesman Najib Danish police have cordoned off the area and are trying to bring the situation under control. However, heavy gunfire is underway.
Afghan media reports said that a group of three or four gunmen attacked the Intercontinental Hotel have used hand grenades and automatic weapons in the attack.
Security officials said it is believed that some people have been taken hostage by the attackers.
The attackers have also set fire to parts of the hotel. Residents in the area report a high volume of ambulances at the scene but the area has been cordoned off by security forces.
On 28 June, 2011, an attack on the same hotel left at least 21 people dead, including all nine attackers. The Taliban claimed responsibility for that attack. No one has however yet claimed responsibility for Saturday's ongoing attack.