A drone, laden with explosives and guided by militants linked to the Islamic State (Isis/Daesh), has exploded in Iraq killing two Kurdish fighters and wounding two members of the French Special Forces.

The French paper Le Monde reported that the two French soldiers were badly wounded in the attack after the remotely-controlled drone was intercepted and then exploded.

It is unclear whether the explosives strapped to the bomb self-detonated with a timer or whether the blast was controlled by remote control.

On top of the two French casualties some other troops were injured in the explosion. The French Ministry of Defence, which does not discuss its deployment of Special Forces, declined to comment about the reports.

Roughly 500 French military personnel are currently on operation in Iraq as part of the US-led coalition battling the Islamic State. Among the French troops are special forces who have been advising and training Kurdish Peshmerga forces in the north of the country.

Reuters reported that an Iraqi military spokesman in Baghdad was not able to confirm the news immediately and Peshmerga sources were not immediately available for comment.