ABC reported that 2 hostages were confirmed dead in the Sydney siege -- Katrina Dawson, 38, and the manager of the Lindt cafe Tori Johnson aged 34.

According to the Aussie police, the two hostages and gunman Man Haron Monis werer killed in the siege.

The gunman was also killed. He was at the centre of a 16-hour siege at a cafe in Sydney's CBD. He held 17 hostages in the cafe.

There were loud explosions and yelling heard from outside the Lindt Chocolate Cafe in Sydney's Martin Place when armed police stormed the building about 2.00am as per ABC report.

The gunman named Man Haron Monis is an Iranian cleric on bail for a string of violent offences including murdering his wife.

Aside from hostages Tori and Katrina, police said there were three female hostages, aged 75, 52 and 43 who also got gunshot wounds and all were in a stable condition. Two pregnant hostages, aged 30 and 35, were assessed at the scene.

There was also a police officer, 39, whowas treated for a minor gunshot wound to his face and discharged from hospital.

Prime Minister Tony Abbott described the siege as a "brush with terrorism." The said gunman had used the "symbolism" of Islamic State, "Let us all pray for peace on Earth."

Watch the hostage drama here.