Sydney terror: Five hostages run out of siege cafe, says the police

Latest reports say no hostage has been harmed or injured; standoff continues

Five people ran out of a Sydney cafe where a gunman has taken hostages and displayed an Islamic flag against the window, police said today, adding that no one has yet been harmed.

Five people were seen running from the cafe on footage shown on Channel 7.

According to New South Wales Deputy Commissioner Catherine Burn, three people who came out of Lindt Cafe at Martin Place were with the police. Two came out through the front door and one through the fire escape. It is still not known whether they were freed or escaped. 

Andrew Scipione, the commissioner of the New South Wales police, said at a news briefing that an unknown number of hostages were being held. 

This image taken from video shows people holding up hands inside a cafe in Sydney

Police have, however, said there were fewer than 30 people inside the cafe. 

Television footage showed people inside the cafe with their hands pressed against the window holding the black flag known as Shahadah, a prayer spoken in mosques daily, and not a flag specific to the Islamic State, reports said. 

Scipione said at this stage police were treated it as a hostage situation but were "on a footing consistent with a terrorist act".

The gunman is being described as being in his forties, wearing a black vest. 

Police have established contact with the gunman and they are trying to resolve the matter peacefully. 

"A peaceful resolution will be what we are working for," Burn said.

The siege incident came hours after a Sydney man was arrested in a counter-terrorism raid but the Commissioner said the two didn't appear to be connected.

As a security precaution, the Indian consulate and the US Consulate General in Sydney have been evacuated, along with other buildings in the vicinity of Martin Place. One Indian IT professional may be among the hostages, said Union Minister Venkaiah Naidu.

Authorities have sealed off surrounding streets, evacuated people from buildings, and suspended rail services following the incident in the heart of the city's business district. 

Martin Place is a public pedestrian thoroughfare through the heart of Sydney, joining its parliamentary, legal and retail districts. The Sydney Opera House, State Library, US consulate and all court houses here have been evacuated.