The attack took place on the eve of a presidential election that Taliban insurgents have pledged to disrupt through a campaign of bombings and assassinations.
The AP said photographer Anja Niedringhaus had been killed and reporter Kathy Gannon wounded while they were sitting in their car.
Niedringhaus, 48, an internationally acclaimed German photographer, was killed instantly, according to an AP Television freelancer who witnessed the shooting.
Canadian reporter Kathy Gannon, 60, was wounded twice and was receiving medical attention, the AP said.