At least 40 civilians have been killed following the collapse of Mirza Olang village of Sar-e-Pul province, said provincial governor Mohammad Zahir Wahdat.
Reports indicate that some of the villagers were beheaded while some others were shot dead.
Dozens more civilians were taken hostage by the militants, said the officials.
The incident happened last evening in Mirza Oland village after the insurgents seized control of the area, said Sar-e-Pul governor Mohammad Zahir Wahdat as violence continues to increase in the country.
"The insurgents, after capturing the village, took dozens of civilians hostage. So far no contact has been established with the hostages, we call on the central government and security institutions to launch an operation to free hostages from the insurgents without being harmed," added Wahdat.
This comes few days after the insurgents infiltrated the village following days of fierce fighting with the security forces.
"Alongside the military personnel, up to 30 or 40 civilians including the women and children and old men have been killed by the insurgents after they captured the Mirza Olang village," said Wahdat.
The Ministry of Interior (MoI) has confirmed battles between Afghan security forces and the insurgents in Sayyad district of Sar-e-Pul where the village is located, but it did not confirm the number of casualties.
"Fierce fighting continued in Sar-e-Pul over the past two days, unfortunately civilians and military personnel have sustained casualties during the battles." Said MoI spokesman Najib Danish.
Provincial governor warned that the insurgents could overrun the entire district if the security forces do not retaliate on time.
So far no group has claimed responsibility for the killing of 40 civilians.