UPDATE: Police chief dodges question on whether dead hostages were shot by gunman or police.

UPDATE: Police say they stormed cafe after gunshots were fired inside.

UPDATE: No explosive devices found at the scene.

UPDATE: Three confirmed dead in Police press release:

UPDATE: A third person reported dead from a heart-attack.

The Iranian gunman who held dozens of hostages inside a Sydney cafe has been killed after police stormed the building at around 2am of Tuesday morning local time.

Special ops police reportedly fired automatic weapons and deployed stun grenades as they charged inside the Lindt cafe in Martin Place, a bustling business center and popular tourist destination of the city.

Two are said to have been killed in the raid, with three others seriously injured, according to initial reports.

Hostages were seen running for their lives during the raid, while others were brought out on stretchers shortly after. One hostage, clearly distressed and with blood flowing down her legs, was carried out by emergency responders.

Australian station Nine News reported that eleven hostages had been accounted for after the police raid.

Early reports indicated that the gunman, Man Haron Monis, had told hostages that he had a bomb and that he also had two accomplices who had planted bombs elsewhere in the city. There has so far been no further details regarding these claims, nor have there been any reports of any bombs being detonated.

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