Taliban insurgents have captured an area of the Dawlatabad district of northern Balkh province, a security official said on Monday.
A credible source, wishing anonymity, told Pajhwok Afghan News the militants overran the Chahi area of the district on Sunday night.
He added the market and others part of the area were currently under insurgent control, with security forces tactically retreating from it.
Mohammad Karim, a resident of the neighborhood, confirmed the development and said the security forces had left the area without any resistance.
He said there were one police check-post and two Afghan Local Police posts in Chahi. All three checkpoints had been overrun by rebels, the resident added.
But police spokesman Sher Jan Durrani denied the fall of the area, saying the militants attacked the security posts and the personnel manning them beat a tactical retreat.
He said the fighters suffered casualties in retaliatory gunfire from the security personnel but exact figures were yet to be known.
On the other hand, Taliban claimed the fighters had captured the Chahi district, inflicted casualties on the security forces and seized several weapons and ammunition.
Local officials and inhabitants say Chahi part of Dawlatabad district.
The militants also claimed they had captured two villages of Balkh district but the authorities denied the assertion as groundless.