Kabul, Sep 9 (Xinhua) Over 40 Taliban insurgents and one ISAF soldier were killed in Afghanistan's Kandahar province, the NATO-led International Security Assistance Force (ISAF) said Saturday.

The rebels were killed late Friday and early Saturday in 'Operation Medusa', which was launched a week ago by around 2,000 ISAF and Afghan troops to end insurgency in Panjwai and Zhari districts.

One ISAF soldier, whose nationality is yet to be announced, was also killed.

In the latest conflict, Afghan and ISAF troops have destroyed three insurgent positions, a bomb-making factory and a weapon cache, IASF said, adding the troops are now occupying parts of the two districts.

Operation Medusa is the largest such operation undertaken against Taliban rebels since ISAF took command in southern Afghanistan from the US-led coalition forces on July 31.

Over 340 Taliban militants have been killed and at least 80 captured in the operation, according to ISAF, which also said over 700 militants have been besieged in the two districts by ISAF and Afghan troops.