Melbourne siege an act of terror, ISIS claims responsibility

Australian police is now treating a fatal shooting and hostage situation in Melbourne that left two persons dead, including the attacker as an 'act of terrorism."

It comes after the Islamic State claimed responsibility for the attack.

We are treating it as an act of terrorism," Russia Today quoted Victoria State Police Commissioner Graham Ashton, as saying.

"We believe this person was there with those sorts of [terrorist] intentions, albeit we don't know whether it was something planned or something spontaneous at this stage," he said.

Authorities have identified the attacker as a Somali-born man, Yacqub Khayre, 29, who lived with his mother in a Melbourne suburb.

Khayre, was killed in a gun battle with police when he opened fire following an hour-long standoff after taking a female escort hostage at a serviced apartment block in Melbourne on Monday evening.Police are now searching the mother's house.

Khayre was on parole after serving time in prison for a violent burglary in 2012, Ashton said. According to Australian media, he was also known to counter-terrorism authorities for his alleged involvement in a 2009 terror plot to attack the army barracks in Sydney.

The Victoria Police have resolved a hostage situation in Brighton in the Melbourne suburb of the city on Monday.

Another man was reportedly found dead in the premises of the apartment, local media reports said. As per the reports, three cops were also injured during the counter siege operation.