Key: Hurt NZ soldiers in 'crucial role'

An Afghan army officer mans a heavy gun mounted to a vehicle at the entrance to the Inter Continental hotel in Kabul last night, during a gun battle that saw two New Zealand soldiers injured. Photo / AP

New Zealand troops played a crucial role in the Kabul firefight which left two special forces soldiers injured and 10 civilians dead, Prime Minister John Key said tonight.

When Taleban suicide bombers launched an attack on the Intercontinental Hotel early this morning (NZT) a small group of New Zealand troops went to it in a mentoring capacity with local forces, Mr Key told reporters in India where he is on an official visit.

"The incident obviously escalated, there was a need for the New Zealanders to go into the building involved, they played an active part," he said.

"They played a very crucial part in making sure the building was safe."

The Defence Force said the injuries to the two soldiers were moderate and next of kin had been informed.

It said special forces supported the Afghan Police Crisis Unit after the Taleban launched the attack.

The New Zealanders came under small arms fire and explosions as an ISAF helicopter with a sniper team fought the insurgents on the roof of the hotel.

Mr Key was reported to have earlier told reporters New Zealand forces weren't involved in the fight.

He said later his office wasn't advised before the mission because the New Zealanders were acting in a mentoring capacity rather than being on an active mission.

"That's normal, I don't get advised of that otherwise I'd be getting advised every five minutes of different missions," he said.

It was not known how many special forces troops were involved but Mr Key referred to "a handful".

The five hour battle raged overnight (local time) and reportedly left at least 10 people dead, most of them hotel workers.

The state-owned hotel, which is not part of the global InterContinental chain, was hosting delegates attending an Afghan security conference and a large wedding party when the insurgents struck at dinner time.

"Unfortunately, as a result of this terrorist attack, 10 of our countrymen, all of them civilians, lost their lives," said Kabul police chief Ayub Salangi.

Interior ministry spokesman Siddiq Siddiqi said the operation had ended after five hours of violence with the deaths of what he believed were six suicide bombers.

Among those staying at the hotel were Afghan government officials from across the country who were in Kabul for a conference on the handover of power from foreign to Afghan security forces.

The process starts next month.

Taleban spokesman Zabihullah Mujahid told Agence France Presse the militant Islamist group was behind the attack.

He claimed the militants had taken over the hotel, killing 50 guests including foreigners and officials, and had taken a further 300 hostage.

Two New Zealand soldiers have died while serving in Afghanistan.

- NZPA