Australian soldiers may have shot an Afghan boy during a battle in Afghanistan on Sunday.

The Diggers were working alongside Afghan police when they were attacked with guns and rocket-propelled grenades in the Deh Rafshan area in Oruzgan province.

The Department of Defence said one insurgent was killed in the battle.

"On follow-up, the partnered patrol found a local boy suffering from gunshot injuries to the upper body," it said.

The boy is in a critical condition after being evacuated by air to a hospital at Tarin Kowt.

Defence officials said an internal review of the incident had begun.