NATO said air support was requested by security forces on the ground as the militants deployed heavy weapons and retreated into a nearby compound.
Provincial authorities had earlier said several members of a single family appeared to be killed in the strike, with one official saying "at least 18 civilians were killed", which could not be confirmed. NATO has said it was investigating the incident.
Haji Mohammad, who lived near where the incident occurred, said the strike came after the Taliban entered a home during a battle with security forces, saying it killed several civilians inside along with nine insurgents.
Civilians continue to face "extreme levels of harm", a recent UN report said, with 8,050 people killed or wounded in the January to September period this year.
Violence has escalated in the past year as US and Afghan forces press ground and air offensives against Taliban and IS insurgents.
The Taliban has also upped assaults on Afghan forces even as the United States increased efforts to engage the militants in peace talks.
Washington is trying to find a way out of the conflict more than 17 years since it began.
US envoy Zalmay Khalilzad is spearheading efforts to strike a peace deal with the Taliban before Afghanistan's presidential election, scheduled for April next year though officials have said it could be postponed until July.
A Taliban delegation met with Khalilzad in Doha in October and November to discuss ending the Afghan conflict. Khalilzad has said he is "cautiously optimistic" for an end to the conflict.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.