KABUL - Afghan security forces have freed 18 civilians and two militants after a Taliban attack on a popular lakeside hotel on the outskirts of the capital Kabul, but a siege was still ongoing and more hostages may be held, the city police chief said on Friday.

"Two terrorists have been killed and we have cleared the second floor of the hotel. We are now clearing the area of the remaining insurgents," Kabul Police Chief Ayoub Salangi told Reuters.

"Our officers have not gone yet to the lake side (of the hotel) and we don't know if there are more terrorists," he said.

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