The fighting occurred during a security operation to locate a Haqqani network leader who intended to attack the governor of Paktiya province, the International Security Force Joint Command reported Wednesday.
Security forces conducted a search for the leader at a compound in the Zurmat district after intelligence reports and numerous sources indicated an attack on the Paktiya governor was imminent.
Insurgents armed with rocket-propelled grenades, machine guns and assault rifles fired on security forces when they tried to enter the compound.
The joint command release said numerous insurgents were killed and one was injured during the fighting.
Inside the compound they found a dead Afghan woman and several injured civilians including three women and four children.
"Here's another example of the insurgents' complete disregard for human life," said Rear Adm. Hall Pittman, ISAF deputy chief of staff for communication.