Jalalabad (Afghanistan), Aug 3 (AP) Afghan forces said they retook a prison in the country's east on Monday afternoon, following an hours-long battle a day after the facility was targeted by the Islamic State group in an attack that killed 29 people.

The prison is believed to be holding hundreds of IS members.

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The attack highlighted the challenges ahead for Afghanistan, even as US and NATO forces begin to withdraw following America striking a peace deal with the Taliban.

Defence Ministry spokesman Fawad Aman said the prison was taken back in the afternoon. The fighting also left at least 50 wounded.

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Even as Afghan troops seized the prison in Jalalabad, the capital of Nangarhar province, some 115 kilometres (70 miles) east of Kabul, IS militants continued to fire on Afghan security forces from a nearby neighbourhood.

Sporadic gunfire rang out from nearby residential buildings in central Jalalabad, an area of high security near the provincial governor's office.

As security forces swept through the prison, they found the bodies of two Taliban prisoners apparently killed by the Islamic State group, showing the tensions between the two militant factions battling each other in eastern Afghanistan.

The 29 dead included civilians, prisoners, guards and Afghan security forces, said Attaullah Khogyani, the provincial governor's spokesman.

The attack began Sunday, when an Islamic State suicide bomber drove a car laden with explosives up to the prison's main gate, detonating the bomb. Islamic State militants opened fire on the prison's guards and poured in through the breach.

The IS affiliate in Afghanistan, known as IS in Khorasan province and headquartered in Nangarhar province, later claimed responsibility for the attack.

The motive of the attack wasn't immediately clear. However, some of the 1,500 prisoners there escaped during the fighting. Khyogyani said about 1,000 prisoners who earlier escaped had been found by security forces across the city. It wasn't immediately clear if any prisoners were still at large.

Several hundred prisoners in Jalalabad are believed to be Islamic State members.

The attack came a day after authorities said Afghan special forces killed a senior Islamic State commander near Jalalabad.

While the Islamic State group has seen its so-called caliphate stretching across Iraq and Syria eliminated after a yearslong campaign, the group has continued fighting in Afghanistan. The extremists also have battled the Taliban in the country, whom the US overthrew following the 2001 American-led invasion after the September 11 attacks.

The Taliban's political spokesman, Suhail Shaheen, told The Associated Press that his group was not involved in the Jalalabad attack. The US struck a peace deal with the Taliban in February. A second, crucial round of negotiations between the Taliban and the political leadership in Kabul has yet to start.

The Taliban had declared a three-day cease-fire starting last Friday for the major Muslim holiday of Eid al-Adha. The cease-fire expired at 12 am on Monday, though it wasn't immediately clear if it would be extended as the US pushes for an early start to intra-Afghan negotiations that have repeatedly been delayed since Washington signed the peace deal with the Taliban.

“We have a cease-fire and are not involved in any of these attacks anywhere in the country,” Shaheen said.

The Taliban also had denied being involved in a suicide bombing in eastern Logar province late Thursday that killed at least nine people and wounded 40.

Afghanistan has seen a recent spike in violence, with most attacks claimed by the local IS affiliate. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)