A statement from Prime Minister Tony Abbott

The Prime Minister's office sent this out moments ago: "New South Wales Police and the Australian Federal Police are currently responding to a reported hostage-taking incident in Martin Place in 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.

Hostages held at Martin Place
Witnesses say a man with a gun is holding hostages at Lindt Cafe in Martin Place in an incident that may be linked to Islamic State.

5:04pm: Really remarkable footage of the women running out of the cafe. We'll have pictures up soon.

That takes the number of hostages who appear to have escaped to five. Authorities have still not confirmed how many staff and customers were taken hostage this morning.