The Ministry of Interior (MoI) said the incident took place on Saturday evening in Chak district, leaving three militants dead and another militant injured.
The Taliban militants group has not commented regarding the report so far.
Taliban militants frequently use Improvised Explosive Device (IED) as the weapon of their choice to target Afghan security forces. However, the ordinary civilians are mostly targeted in roadside bombings.
This comes as at least four Taliban militants were killed following a premature explosion in southern Helmand province on Saturday.
According to local government officials, the militants were travelling in a vehicle-borne improvised explosive device (VBIED) in the outskirts of Lashkargah city when the incident took place.