The blast occurred shortly after 8.30am (3pm AEDT) in the heavily fortified centre of the city.
Witnesses said it took place near the Ministry of Interior, which is close to other major government buildings and a busy shopping district.
A spokesman for NATO's International Security Assistance Force (ISAF) in Kabul confirmed a blast had taken place but gave no further details.
It is the fourth blast to hit the capital since mid-August, just before presidential elections were held on August 20 amid a campaign of violence and intimidation conducted by Taliban insurgents.
Most recently, six Italian soldiers were killed and another three wounded in a suicide attack on a military convoy on the road to Kabul's international airport on September 17.
The Taliban claimed responsibility for that attack, which also killed 10 Afghan civilians and wounded more than 50 in one of the worst single attacks on the more than 100,000 NATO and US-led troops serving in Afghanistan.
Foreign military deaths in Afghanistan are at record levels - more than 400 in 2009 - and the mounting number of Western troops coming home in body bags has sent support for the war plummeting in Europe and the United States.
On September 8, one attack in Kabul, home to significant numbers of Western officials, troops and aid workers, killed three civilians outside the city's military airport.
Two days before the presidential and provincial council elections, another suicide car bomb targeted a NATO convoy near a US military base in the capital, killing 10 people including a NATO soldier.
Source: The Australian