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Two women, wearing Lindt employee uniforms, have escaped the Lindt cafe in Martin Place taking the total of freed to five.
It comes about an hour after three men were seen running free from the building to safety a short time earlier, after being held by a gunman since just before 10am this morning.
Prime Minister Tony Abbott addressed the media for a second time regarding the unfolding events, from a press conference at Parliament House.
The Prime Minister said: “This is a very disturbing incident. It is profoundly shocking that innocent people should be held hostage by an armed person claiming political motivation.
“Nevertheless, I can say that NSW Police and other agencies have responded to this incident with great professionalism. Throughout the day, there has been nothing but complete and total cooperation between different governments and different agencies.”
“You can be proud of the way your police and security bodies have responded to the events of this day.”
NSW Police Deputy Commissioner Catherine Burn has confirmed three hostages have exited the building, though an unconfirmed number of men and women still remain inside the cafe.
“Negotiators remain on the scene,” Deputy Commissioner Burn said.
“Investigators are trying to work out the offender’s motivations.
“I can’t speculate on how many people remain in the cafe.
“We don’t believe anyone else in the cafe has been injured.”
Deputy Commissioner Burn also confirmed that police have now made contact with the gunman, however she would not confirm whether or not the suspect had an accomplice with him.
Earlier today Australian Prime Minister Tony Abbott spoken at a press conference about the siege currently unfolding in Sydney’s CBD.
“Our thoughts and prayers must above all go out to the individuals who are caught up in this,” Prime Minister Abbott told reporters in Canberra.
“I can think of almost nothing more distressing, more terrifying than to be caught up in such a situation and our hearts go out to those people.”
He urged anyone who witnesses any suspicious or untoward activity should contact the national security hotline – 1800 123 400.
“Australia is a peaceful, open, and generous society,” he said.
“Nothing should ever change that and that’s why I would urge all Australians today to go about their business as usual.”
Police have confirmed that a hostage situation is underway at the Lindt Cafe in Martin Place in the heart of Sydney’s busy central business district.
Earlier today Prime Minister Tony Abbott released the following statement.
“New South Wales Police and the Australian Federal Police are currently responding to a reported hostage-taking incident in Martin Place Sydney.
I have spoken with NSW Premier Mike Baird and offered him all possible Commonwealth support and assistance.
The National Security Committee of Cabinet has also convened for briefings on the situation.
This is obviously a deeply concerning incident but all Australians should be reassured that our law enforcement and security agencies are well trained and equipped and are responding in a thorough and professional manner.
We will provide regular updates as further information becomes available.”
Nearby businesses have been closed by Police and air traffic around the city has been redirected.
It’s believed a man with a gun has held up the popular cafe, with 13 people reported to be inside, including both staff and customers.
There was also a flag seen being held up in the window with Arabic writing, which translated as: “There is no God but Allah and Muhammad is the messenger of God”
The Seven newsroom headquarters situated alongside the Lindt cafe crossed to their Melbourne newsroom as staff were forced to evacuate, including Morning Show presenters Larry Emdur and Kylie Gillies.
It’s feared it could be a terrorist hostage situation, although police are yet to confirm this.
There are dozens of armed police officers on site, with the riot squad on hand and SAS officers reportedly also being called in.
At one stage, one hostage was told to move away from the window and sit on the ground and another hostage took their place.
It is also feared that the Sydney Opera House may also be in danger with workers from that building reportedly also being evacuated.
A 25-years-old male was also arrested this morning in the Sydney suburb of Beecroft, allegedly for financing terrorism. It is unclear at this stage whether this is linked to the siege in Martin Place.
The Australian Federal Police said in a statement: as part of continuing investigations into the planning of a terrorist attack on Australian soil and the facilitation of travel of Australian citizens to Syria to engage in armed combat.”
Ambulance officers have been seen on hand in Sydney’s Opera House, with reports that the evacuation came after a suspicious package was idenitified on the site.
It is believed Sydney’s District Courts at the Downing Centre on Liverpool street have also been evacuated.
Police from all over Sydney have been called in, as planes are rerouted around the Sydney CBD in order that Police helicopters are able to circulate, however commercial flights are still landing at Sydney Airport.
A person of interest is allegedly telling negotiators that he has control of the city, demanding to speak to the Prime Minister.
The gunmen are yet to release other demands.
We will continue to update you with further developments as new information comes through.
