Earlier, the Afghan Ministry of Interior spokesman Najib Danish said that a suicide bomber detonated a vehicle filled with explosives.
The incident took place close to the Zanbaq square in the 10th police district of the city.
Local Tolo news reported that the explosion took place near the German embassy. However, some other media reports said it was near the Indian embassy.
External Affairs Minister Sushma Swaraj tweeted : " By God's grace, Indian embassy staff are safe in the massive Kabul blast."
By God's grace, Indian Embassy staff are safe in the massive #Kabul blast.
— Sushma Swaraj (@SushmaSwaraj) May 31, 2017
Similar incidents have taken place in Afghanistan in the past few months.
Earlier this month, at least eight people were killed after militants targeted a NATO convoy while it was passing the US embassy.
No group has claimed responsibility so far.