President Trump has called off peace negotiations with the Taliban following a bombing in Kabul last week in which a US soldier was among 12 people killed.

A US envoy had reached a draft peace deal with the Taliban just last week after months of painstaking negotiations.

Last night, Mr Trump said that he had planned unprecedented talks with the Taliban and separately, the President of Afghanistan Ashraf Ghani today in Camp David, the presidential retreat in Maryland. 

Mr Trump tweeted: "Unbeknownst to almost everyone, the major Taliban leaders and, separately, the President of Afghanistan, were going to secretly meet with me at Camp David on Sunday."

"Unfortunately, in order to build false leverage, they admitted to an attack in Kabul that killed one of our great great soldiers, and 11 other people.

"I immediately cancelled the meeting and called off peace negotiations", continued Mr Trump.

"What kind of people would kill so many in order to seemingly strengthen their bargaining position? They didn't, they only made it worse!" Mr Trump said.

Mr Trump would have met the Taliban at Camp David - scene of secret 1978 talks as Jimmy Carter brokered peace between Israel and Egypt - days before the 18th anniversary of the September 11 attacks, which triggered the US invasion that toppled the militants' regime in Afghanistan.

The Taliban said Mr Trump's decision to cancel peace talks with its leadership would lead to the further loss of American lives and assets.

"The Americans will suffer more than anyone else for cancelling the talks," Zabihullah Mujahid, a spokesman for the hardline insurgent group, said in a statement.

He said the talks were being conducted in a smooth manner until yesterday, and both sides had agreed to hold intra-Afghan talks on 23 September.

Politicians and officials in Washington were jolted by the announcement from Mr Trump.

"The idea that Trump was planning to host Taliban leaders at Camp David is a rather big surprise," said Laurel Miller, who served as the US special representative on Afghanistan and Pakistan until early in the Trump administration.

According to parts of the draft deal that had been made public, the Pentagon would pull about 5,000 of the roughly 13,000 US troops from five bases across Afghanistan by early next year.

The Taliban in turn would renounce Al-Qaeda, promise to fight the Islamic State group and stop jihadists using Afghanistan as a safe haven - the primary reason for the 2001 invasion.