At least three people are reportedly dead and it is believed one is the gun man, Man Haron Monis who held up to 17 people hostage in the Lindt Chocolate Cafe in Martin Place, Sydney since yesterday morning.
Police have also reported that four other people are injured.
Some hostages have been rushed to hospital some suffering serious injuries after police stormed the cafe this morning.
Stun grenades were used and shots rang out as police rushed the building.
Police released a statement saying the gun man was known to them.
The stand off continued throughout the day yesterday and Police negotiators attempted to communicate with Monis.
Five hostages escaped between 6-8pm last night and reportedly more made a break for it in the early hours of the morning.
The area was cordoned off by Police and armed officers at around 9:45 yesterday morning.
Those being held inside the Lindt Chocolate Cafe were forced to hold up a black banner with white writing on it.
The cafe is directly across the road from the Channel 7 newsroom which has been evacuated along with other buildings in the area.
7 News has a live feed of the situation which can be located on the link below.