The leader of the Taliban has allegedly been captured and is being held near Kandahar.
Mullah Mohammed Omar's whereabouts are not known, although the
London Times
newspaper says he is being held in a Taliban-friendly environment.
But, the new head of the Afghan interim government, Hamid Karzai, said the reports were "all lies".
He added: "We are looking for him. He's a fugitive."
A spokesman for Gul Agha Sherzai, a Kandahar commander, said Mullah Omar was in the custody of a warlord sympathetic to the regime.
Khaled Pashtoon added that Mullah Omar was being held in a "(Taliban)-friendly environment".
It is expected his group will demand that he be handed over, probably to the new Afghan government.
US officials said word of Mullah Omar's capture was "potentially interesting".
A spokesman said there had been no independent verification from US special forces.
He commented: "In the absence of that we will tend to see what comes out."
PA