The blast took place at a gathering of the conservative Jamiat Ulema Islam-Fazl party, known for its links to hardline political Islam, in the former tribal area of Bajaur, which borders Afghanistan.

The attack happened during an afternoon worship in the provincial capital of Peshawar, close to areas along the Afghan border where militancy has been steadily rising.

Patek, a member of the Al Qaeda-linked Jemaah Islamiyah, was jailed for 20 years in 2012 after he was found guilty of mixing bombs that ripped through two Bali nightclubs, killing 202 people, including 88 Australians.

The suicide bomber was believed to be affiliated with the Islamic State-inspired group Jamaah Ansharut Daulah (JAD) and had previously been jailed on terrorism charges, police say.

The attack killed the suspected perpetrator and one officer, and wounded eight others, including officers and one civilian.

The explosion, claimed by the Pakistani Taliban militant group, or Tehreek-e-Taliban Pakistan, came after the group ended a ceasefire with the government.

Violence has flared this year, particularly in the occupied West Bank, where the Israeli army has launched near-daily raids since a series of deadly attacks on Israeli targets earlier this year.

The candlelight vigil will be held at the site of the attack by victims' family members to mark Southeast Asia's deadliest terrorist attack and remember the 202 victims.

A total of 202 people, including 88 Australians, were killed when a car bomb exploded on Oct 12, 2002 outside the Sari Club and from another blast less than a minute earlier at Paddy's Bar across the road.

Bali bombing mastermind Hambali, also known as Encep Nurjaman, is currently detained at Guantanamo Bay in Cuba and has been awaiting trial since 2006.

The blasts occurred within minutes of each other in different districts of Mazar-i-Sharif as commuters were heading home to break their dawn-to-dusk fast.

Thousands of civilians are thought to be trapped inside the city, where communication, water, electricity and gas have been cut.