A hunt is still on for three missing US servicemen
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The US military says it regrets that civilians were killed in an air strike by US forces in eastern Afghanistan.
Women and children were among 17 killed in the raid on Chechal village, Konar province governor Assadullah Wafa said.
The bombing last Friday was part of a search for four missing special forces soldiers. One has been found safe.
A second US soldier is alive and being cared for by villagers, Mr Wafa said. The US military would not comment. A hunt for the missing three continues.
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A military statement from US-led coalition forces said last Friday's attack had been on "a terrorist compound".
It said an unknown number of militants and civilians had died, and accused the militants of using their families as human shields.
"Coalition forces deeply regret the loss of innocent lives and are investigating the incident to prevent future occurrences."
The government in Kabul expressed concern at the deaths. US-led raids on Afghan targets have resulted in dozens of civilian deaths since late 2001.
'Villagers have him'
Governor Wafa had earlier called the bombing a "mistake" and called for an inquiry.
He said Afghan forces had information that a wounded American soldier was being looked after by villagers in a remote part of the province.
"Our troops are trying to reach the place," he told Reuters. "Villagers have him and are treating him for wounds.
"He is safe and there is no danger to his life."
Last week, a US helicopter that was sent to look for the missing men was shot down by suspected Taleban militants, killing 16 US soldiers.
US soldiers rescued one of the missing servicemen on Saturday.
A US military spokesman said that a search operation to find the other unit members was going on despite bad weather, mountainous terrain and the continued threat of militant attacks.
'Lucky shot'
The BBC's Andrew North says the rescued soldier reportedly pointed the US search team in the direction where other members of the team had gone, but their whereabouts and condition still remains unclear.
The downing of the helicopter was the biggest single US combat-related loss of life in Afghanistan since the overthrow of the Taleban government in late 2001.
Claims by a Taleban spokesman that they had captured the men have been denied by the US.
Names and details of the 16 troops who died on board the Chinook have already been released by the US military.
US officials said it had been a "lucky shot" by the suspected Taleban fighters that brought down the helicopter.
Escalating violence in southern and eastern Afghanistan has seen some 500 people killed in recent weeks, mainly suspected militants.
The US has sent additional troops to Konar as part of a new operation - Operation Flier - against militants in the region, ahead of parliamentary elections due in September.