"The toll is 10 dead and 20 injured," Peshawar district administration chief Sahibzada Anis was quoted by news agency as saying.
"The suicide bomber came in a car and exploded it when the mayor was standing with some visitors outside his guesthouse near the local livestock market," Anis said.
Abdul Malik, local Mayor, and a young girl were among the eight persons who died in the attack, Anis said.
The bomber struck shortly after 9.30 am local time, when the market was packed with people. The injured were taken to hospitals in private cars and ambulances.
Police officials said Malik was the target of the suicide attack at the cattle market in Mattani, a suburb of Peshawar.