The fighting is close to the police HQ building, military base, and the National Directorate of Security (NDS) department in the city, the source said.
The clash started on Wednesday after the Taliban attacked several parts of the city and fought with security forces.
After the initial attack, Hasamuddin Shams, the provincial governor, said that the Taliban had been pushed back by special forces and local troops and a “clearing operation is underway.”
Ziauddin Akazi, an MP from Badghis, said that the Taliban resumed their attacks on the city on Thursday and urged the central government for reinforcements.
He is also concerned about the civilian situation in the city.
However, the Ministry of Defense on Thursday morning issued a statement saying that “a large number of Afghan commandos have arrived on Wednesday night in Qala-e-Naw and clearing operations are ongoing.”
The ministry also said that “at least 69 Taliban were killed and 23 others were wounded during Wednesday’s airstrike in several parts of Qala-e-Naw.”
There are no reports of casualties of security forces and civilians.
The Taliban has not commented on the attack on Qala-e-Naw.