The New Zealand Defence Force said the soldier was killed in an attack on a New Zealand Provincial Reconstruction Team (NZPRT) patrol in the north-east of the Bamiyan province.
The name of the dead soldier has not been released.
The two injured soldiers were being evacuated and were said to have serious, but not life threatening, injuries. Newstalk ZB have named one of the injured soldiers as Matthew Ball.
BAMIYAN, AFGHANISTAN - AUGUST 4: The plane to carry the body of 28-year old Lt. Tim O'Donnell of the Royal New Zealand Infantry Regiment arrives at Bamiyan airport and the New Zealand Provincial Reconstruction Team following his death yesterday, on August 4, 2010 in the central Afghan province of Bamiyan, Afghanistan. O'Donnell is the first New Zealand soldier to be killed in the Afghanistan conflict, following an ambush which also left another two New Zealand soldiers and an Afghan interpreter wounded. New Zealand forces had expected to end their 7-year deployment in September this year until New Zealand Prime Minister John Key confirmed in May that he would retain them in the region for a further year.
A local interpreter taking part in the patrol had also been wounded.
The fatality was New Zealand's first combat death in Afghanistan since New Zealand's troops were deployed there in 2003. Defence Force chief, Lieutenant General Jerry Mateparae said they were still trying to piece together the details , but could confirm that the group came under complex attack by as yet unknown assailants at approximatley 12:30 am NZ time.
The dead solider was in one of three vehicles. It was thought an improvised explosive device (IED) was detonated, followed by an attack using rocket powered grenades and other small arms fire.
"This is the first time that the IED has resulted in [New Zealand] casualties and a fatality. It is a constant and persistent threat to the soldiers who are operating in Bamiyan," Mateparae said.
Air support was not able to be used to help the New Zealand patrol because of weather conditions.
Mateparae said they were now in the process of working out how they would repatriate the deceased and wounded soldiers back to New Zealand.
Normal procedure would be for the injured soldiers to be taken to the Landstuhl Regional Medical Centre in Germany though Lt Gen Mateparae did not want to speculate on whether that would be the case.
He also said he wanted the families to come to terms with the news before he released names.
"One of my soldiers has been killed and I want to support his family," he said.
Mateparae said he was also concerned with continuing the mission in Afghanistan despite the soldier's death.
"Our abilities to provide support to the people of Bamyan is one we need to engage."
"We are working to assist the people of Bamyan but it remains a dangerous place especially where this attack occurred in the north east. Thoughts and condolences go to his family and also the two soldiers who were wounded."
Defence Force Minister Wayne Mapp said the death was a reminder that Bamiyan was still a dangerous place, especially in the north-east of the province.
"I acknowledge the loss to the soldier's family and my thoughts and aroha go to his family and the family of those soldiers who were wounded," Mapp said.
Soldier "paid high price"
Prime Minister John Key, who is currently at the Pacific Forum in Vanuatu issued a statement this morning saying his "thoughts are with [the dead soldier's] family and the families of the injured".
"This is New Zealand's first combat loss in Afghanistan and reinforces the danger faced daily by our forces as they work tirelessly to restore stability to the province," he said.
Key said the soldier's contribution and that of all New Zealand Defence Force personnel should never be underestimated.
"It is with enormous sadness that I acknowledge that this soldier has paid a high price."
However, Key said it was right for New Zealand troops to stay in Afghanistan.
"I have no intention of bringing back our people from Bamiyan or our SAS from Kabul because of this incident," he told TV ONE's Breakfast this morning.
"We owe it to the thousands of New Zealanders who have worked so hard in the past eight years to get Bamiyan in a position where we can hand back control."
Key said he would be phoning the family of the dead soldier later this morning.
Key visited Bamiyan province earlier this year and told Breakfast the area where the incident took place is "a pocket of real insurgent activity".
The government had announced that the NZPRT would extend their secondment until September 2011.
The force works on maintaining security in Bamiyan Province, and carries out frequent patrols throughout the area. It also supports the provincial and local government by providing advice and assistance to the Provincial Governor, the Afghan National Police and district sub-governors. ONE News reporter Michael Parkin had also recently been in Bamiyan and told TV ONE's Breakfast this morning that Kiwi soldiers in Afghanistan were well aware of the dangers they face.
He said the soldiers in the region knew that this day would eventually come.
"This is the job they are there do, they know the risks and keen to take them on."
The northern region of the province, where the attack took place is, "where the geography is on the side of the insurgents," Parkin said.
The 16th rotation of the NZPRT, commanded by Colonel John Boswell arrived in Afghanistan in April and were expected to remain in the country for about six months.
New Zealand also has Special Air Service personnel serving in Afghanistan. In total New Zealand has about 140 personnel in Bamiyan and about 80 SAS soldiers in Kabul.