UPDATE 1-Afghan govt denies Saudi meeting was peace talks

(Recasts with Afghan government comment)

By Jon Hemming

KABUL, Oct 7 (Reuters) - Afghanistan on Tuesday denied there had yet been any peace talks with Taliban insurgents mediated by Saudi Arabia, despite a meeting hosted by the kingdom last month between Afghan government officials and former Taliban leaders.

With casualties from the war in Afghanistan, which began on Oct. 7, 2001 and is now entering its eighth year, reaching record levels, military commanders and diplomats from NATO countries are calling for talks with the Taliban as the only way to end the fighting.

Afghan President Hamid Karzai made a direct appeal for peace to Taliban leader Mullah Mohammad Omar a week ago and asked Saudi Arabia to help mediate in talks. But negotiations have yet to take place, Karzai's spokesman said.

"Afghanistan has not been speaking to anyone with the help of the Saudis and our brothers in Saudi Arabia," presidential spokesman Humayun Hamidzada told a news conference.

Karzai, he said, "has approached his Highness the Saudi king about playing a role ... in bringing peace to Afghanistan and he would welcome any effort from the Saudi side.

"The government of Afghanistan is open to speaking with anyone in the opposition and the people who are fighting against the Afghan people and the Afghan government but no such talks have happened as of yet," Hamidzada said.

A former Taliban envoy said he and other former Taliban had travelled to Saudi Arabia last month and met King Abdullah and Afghan government officials but there had been no negotiations.