The incident took place at around 7 am local time in the vicinity of the 10th police district of Kandahar city.
The officials in Kandahar city are saying that the explosion was caused by a magnetic bomb and as a result at least two soldiers have sustained injuries.
However, a security source says at least two soldiers have lost their lives and three others have sutained injuries in the explosion.
No individual or group including the Taliban insurgents group has so far claimed responsibility behind the incident.
This comes as the security situation in southern Kandahar province had relatively improved during the recent months but the militant groups are attempting to carry out attacks in some key parts of the province during the recent weeks and months.
The militants also attacked a convoy of the foreign forces in Daman district nearly three weeks ago but the explosion did not inflict any casualty on security personnel or ordinary civilians.