Afghan soldiers fought back when the heavily armed militants were converged from four sides of the province, resulting in several accidents on all sides, Ghazni government spokesman Mohammad Arif Noori told CNN.
The United States forces responded with assault helicopters and a drone strike, according to US spokesman Martin O'Donnell.
Strong battles were going on Friday afternoon in the city, where Afghan and NATO forces were engaging fighters "by air and land," said Noori.
Taliban spokesman Zabiullah Mujahid said in a statement that hundreds of fighters armed with heavy and light weapons went into Ghazni city around 1 o'clock local time, catching a number of strategic places in the city and killing over 1
In a twist, the US forces called Afghanistan the attack of "failed attempts" to seize territory "while creating strategically incoherent headlines."
An ambitious attack on a capital city
Ghazni, the capital of the province of the same name, is located less than 100 miles south of Kabul. It is located on Kabul-Kandahar highway, an important artery that connects the capital with its southern provinces and some of its western.
The attack on a larger population center was one of the group's most ambitious military features this year and was further proof that a violent state of death between the government and the Taliban remains. In May, the Taliban surpasses the western city of Farah, but Ghazni is much more important and the attack is much greater.
If the city would fall to the Taliban, it would jeopardize the security of the capital and the eight provinces that border.
But the extremist group can control the countryside, the combination of Afghan troops with US air support has meant that they can not hold and retain population centers.
Friday's abuse could affect the risk of a potential violent crime between the government and the Taliban for the Eid al-Adha Festival in less than two weeks.
Nearly 1700 civilians were killed from January 1 to June 30, overall higher than any comparable time in the last 10 years, according to the UN.
At the end of last month, US diplomats met face-to-face with the Taliban representatives in Qatar to discuss the basis for peace negotiations, according to The Wall Street Journal.
US diplomats met with Taliban representatives in Qatar without Afghan government officials, said the New York Times and quoted two leading Taliban managers.  The government department did not confirm or deny the negotiations, which would be a reversal of a long-term policy and strategy against the Taliban in Afghanistan.