A gunman has taken dozens of people hostage in a cafe in Sydney’s financial district.
Two Arabic flags similar to those used by Islamic State have been seen inside the Lindt cafe in Martin Place.
Channel Ten has spoken to two hostages who say the gunman claims to have four bombs – two inside the cafe and two in the financial district.
Police are investigating reports the assailant has used hostages’ social media accounts to demand a meeting with Australian Prime Minster Tony Abbott.
Some of the hostages have spoken to their families on mobile phones – while five, three male customers and two female staff, have managed to escape since the siege began more than nine hours ago.