The officials said there were reports of two explosions outside La Chaumiere cafe, and that two employees had been killed and several foreigners wounded.
The sources said police were investigating reports that a grenade blast was followed by an attack by a suicide bomber.
The Horn of Africa nation of Djibouti, a former French colony, is home to a major United States base which is used for anti-terror operations in Yemen, Somalia as well as for other operations across Africa.
Djibouti's port also serves as a key base for ships taking part in international anti-piracy operations off the Somali coast.
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