An armed gunman entered a café in central Sydney on Monday morning at 9.45 am local time and took the staff and customers hostage.
The man, now identified as 49-year old Sheikh Man Haron Monis is from Iran.
Five of the hostages initially came out of the building, but it is not yet known whether they were freed or they escaped.
The New South Wales police is guarding the café from all sides and treating the entire siege and attach as counter-terror operation.
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Many reports said that some of the people inside the café were standing by force at the windows, holding what seems like an Islamic creed flag.
For now, 11 people have been freed from the Lindt Cafe in Martin Place in busy area of Sydney. Only one gunman has been identified so far.
Prime Minister Tony Abbott has said the gunman has his own political motivations in his statement.
It is still not known as how many people are still inside the café for now. Negotiations between the police and the gunman are on.
The gunman is also accused in a number of different cases amounting to murder and sexual assault.
Latest report suggested that heavily armed police have stormed the building where the gunman is still in, which has brought an end to the siege. Early reports said three people are injured, while two are known to be killed.
More details on the case and further reveals from the police and authorities are awaited.