Afghan military officials said that security forces were conducting a clearance operation targeting the remaining Taliban militants in the strategic city.
“The central government in Kabul said the situation in Ghazni was under their control, but we managed to contact officials in Ghazni who said that fighting was underway in areas surrounding Ghazni,” said Ghazni MP Shah Gul Rezaye.
The Afghan lawmaker also noted that additional reinforcements had been rushed to the city to push back Taliban militants.
The Taliban, however, claimed victory over Afghan forces, saying their militants had “conquered a battalion in Ghazni, seizing weapons and ammunition and four pickup trucks.”
Rezaye said it was difficult to confirm who controls the city now as communication systems are down after the Taliban destroyed a telecommunications tower.
Citing anonymous sources, Afghanistan's Tolo News channel said some shops were open in the central parts of Ghazni and that the clashes were ongoing in western parts of the city.
Ghazni in central Afghanistan is a strategic city straddling the main route between the capital Kabul and southern Afghanistan. Clashes started late on Thursday, forcing authorities to close the highway linking it to Kabul, 150 kilometers to the northeast.
The Taliban issued a statement at the time claiming to have captured most of government buildings and that "so far 140 enemy forces have been killed or wounded."
Provincial governor spokesman Arif Noori also said the bodies of dozens of Taliban fighters were in the streets.
The attack on Ghazni comes in the face of growing pressure on the Taliban to agree to peace talks with the Afghan government to end the 17-year war.