The assailants are embroiled in clashes with President Hamid Karzai's bodyguards, as well as security personnel from the nearby ministry of defence and a CIA station.
Police chief said the assailants are killed and attack on presidential place is over.
The presidential palace is in a large fortified area of central Kabul
Police chief said the assailants are killed and attack on presidential place is over.
The Taliban have said they are carrying out the attack.
The incident comes only days after Mr Karzai raised objections about US-backed peace talks with the Taliban.
He said the High Peace Council, the government body set up to lead peace efforts, would not take part unless the process was "Afghan-led".
The attack near the presidential palace, in the area of Shash Darak, began at about 06:30 local time (02:00 GMT), witnesses and police said.
The presidential palace is in a large fortified area of central Kabul
The militants initially targeted the palace's eastern gate, where dozens of journalists had gathered for a news conference with President Karzai.
The BBC's Bilal Sarwary, who was among the crowd of journalists, says they were forced to run for cover as bullets flew overhead.
The journalists heard several explosions, and reports said grenades were being thrown.
Reports BBC
Media reports ten bomb blasts heard in Kabul, near Palace, CIA, ISAF HQ, UNAMA. Smoke rising over central Kabul. Multiple explosions and gunfire have been reported in central Kabul, close to the presidential palace at about 06:30am local time Tuesday. The Taliban claimed responsibility for the assault shortly thereafter. The area of the city occupies important offices where international important organizations, including the United Nations Assistance Mission in Afghanistan, as well as the headquarters for the CIA and the NATO-led International Security Assistance Force.
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American Embassy in Kabul was reportedly placed on lockdown, with ISAF confirming a lockdown over its Twitter feed; other facilities in the area are said to be under lockdown as well. According to the BBC, SMS messages were sent on behalf of the Taliban stating that targets were the presidential palace, the Ministry of Defense, as well as the Ariana Hotel, which is popular with international visitors. The Taliban has also indicated that several suicide bombers were involved in the attack. The CIA building in central Kabul was reported to be on fire, according to 1TV News, a local news broadcaster.
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