Two of the hostages who managed to escaped from the clutches of the lone armed gunman have been identified as a lawyer and a woman cafe employee.
They have been identified as Stefan Balafoutis who is a lawyer and Elly Chen, an employee of Lindt Chocolate Cafe.
Chen was one of two female cafe workers to run from the cafe after an hour after two customers and another staff member fled the building. Chen is a Sydney University student and talented sportswoman.
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Many police officers are involved in the operation, Scipione said.
Authorities sealed off surrounding streets, evacuated people from buildings, and suspended rail services following the siege in the capital of NSW.
NSW Police have activated Task Force Pioneer, which they use in terrorism related incidents, to handle the pre-Christmas incident.
Martin Place -- a public pedestrian thoroughfare through the heart of the city, joining its parliamentary, legal and retail districts -- Sydney Opera House, State Library, Indian and US consulates and all court houses here have been evacuated.
Local TV channel sky news reported that heavily armed police wearing night vision googles have been set up at door near the cafe for several hours.
Over a dozen hostages reportedly remained inside the cafe since the siege began this morning, according to skynews.
The hostage negotiators also remains in contact with the armed man who is still holding hostages, including an Indian techie.
No one has been injured in the incident so far, the reports said.