An Afghan soldier stands guard outside the attorney general's office following a conflict between police and Afghan private security forces in Kandahar on Monday. (Noor Khan/Associated Press)

Kandahar's provincial police chief and nine other police officials died on Monday in a gun battle at an Afghan government complex.

Later, the governor of Afghanistan's southern Kandahar province said 41 private security guards were arrested. Gov. Thoryalai Wesa said the guards had been disarmed and will be sent to Kabul for a military trial.

Gunfire broke out as private security guards moved into a government complex and demanded the release of a man being held in custody.

Police Chief Matiullah Qati was among 10 officers killed outside the attorney general's office in Kandahar, officials said.

The provincial head of the criminal investigations department, Abdul Khaliq Hamdard, also died, officials said.

Afghan President Hamid Karzai said the private security guards involved in the battle were working for U.S. coalition forces and demanded they be handed over.

Karzai is currently on the election trail and has been mounting his campaign around demanding the U.S. pull back from the ferocity of its attacks for the sake of citizens.

Afghan-on-Afghan incident: U.S. military

But Canadian Brig.-Gen. Jon Vance, who was across the street from the complex when the shooting occurred, denied the allegation.

Vance said security guards, who are some times used by coalition forces, were not involved in the incident.

"These were not ISAF [International Security Assistance Forces] in any way, shape or form," Vance said. "This was an altercation between Afghan security forces in downtown Kandahar."

The U.S. military also denied it was involved in the shooting in any way.

"The incident was an Afghan-on-Afghan incident and did not involve U.S. or international personnel or equipment," a U.S. military statement said.

No American forces from any branches — including special operations forces — were actually present or involved in the incident, said U.S. military spokesman Chief Petty Officer Brian Naranjo.

Gun battle over detainee, says witness

Hafizullah Khaliqyar, the district attorney in Kandahar, said Afghan private security guards dressed in military fatigues and carrying guns burst into the office complex, demanding the release of a man accused of falsifying documents.

When the men threatened to release the man by force, Khaliqyar called the provincial police chief, he said.

"After that, when the police chief wanted to talk to these people, there was some argument, and the gun battle started," Khaliqyar said.

CBC correspondent James Murray said that gun battles are common in Kandahar.

Kandahar is the spiritual birthplace of the Taliban, an Islamic militia that ruled Afghanistan in the 1990s and was ousted during the U.S.-led invasion in 2001.

The Taliban has made a comeback in the last three years, wreaking havoc in much of the country's south and east, including Kandahar.

Murray said many people carry weapons in Kandahar and a misunderstanding or dispute can occasionally turn into a gun battle that leaves several dead.

With files from The Associated Press