Donetsk in Russian-occupied Ukraine, local officials reported Sunday.
A further 10 people were injured in the strike on the suburb of Tekstilshchik, said Denis Pushilin, head of the Russian-installed authorities in Donetsk.
He said that the shells had been fired by the Ukrainian military.
Kyiv has not commented on the event and the claims could not be independently verified by The Associated Press.
Emergency services continue to work on the scene, Pushilin said.