The incident took place in the vicinity of Shahr-e-Naw area of Kabul city after a suicide bomber detonated explosives in a vehicle, allowing the other insurgents to launch the attack.
The Ministry of Interior (MoI) says the three attackers who started resistance with the security forces after the explosion were shot dead after almost four hours of gun battle.
MoI further added that only one policeman sustained injuries in the attack and the embassy staff were evacuated safely by the security personnel.
In the meantime, a security source said the incident has taken place close to the embassy of Iraq and was apparently carried out by a suicide bomber.
The ministry of interior officials earlier had said that a total of four attackers are involved in the attack and are resisting the security forces but additional special forces have been deployed to shun the attack.
Earlier reports also indicated that a security guard of the embassy was killed and some others were wounded in the attack.
According to the ministry of interior, the personnel and staff of the embassy were shifted to a secure place without receiving any harm.