7 Afghans killed during missing US troops search

* NATO confirms air strike, checks report of 'friendly fire'

* Search continues for two missing Americans

* Taliban say holding bodies

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KABUL, Nov 7 (Reuters) - NATO forces mistakenly killed seven Afghan soldiers and police in an air strike during a battle while searching for two missing American soldiers in Afghanistan, the Afghan Defence Ministry said on Saturday.

The NATO-led force said none of its troops were killed but five were wounded, along with at least 20 Afghans, in a battle that took place on Friday during a manhunt for the two soldiers who went missing on Wednesday.

"Yesterday, in a NATO air strike, seven Afghan (soldiers and police) were martyred in Badghis province," Afghan Defence Ministry spokesman General Zaher Azimy said, adding that other members of the Afghan security forces were wounded.

Lieutenant Todd Vician, a NATO press officer, confirmed that NATO had launched air strikes during the search operation but said the force was still investigating whether its strikes were responsible for friendly casualties.

Friday's battle took place during a search and rescue operation for two soldiers from the U.S. 82nd Airborne Division, who went missing after a resupply mission.