The attack targeted the office of Kurdish Democratic Party in the town of Zammar on the outskirts of Iraq's northern Kurdish province of Dohuk, Abdul Gani Ali told AFP.

"Three peshmerga fighters are killed and 13 others wounded," Gani said.

Thursday's attack was the second such assault targeting the party's offices in the past three days in northern Iraq.

On Monday, a car bomb outside a KDP office in the mainly Christian town of Tal Isquf near Mosul left 10 people dead and 20 wounded.

KDP is headed by powerful Kurdish leader Massud Barzani who is the president of Iraq's northern Kurdistan adminstration.