Police have cordoned off a street in Oldham after an armed man took a woman hostage: Iram Ramzan/Oldham Evening Chronicle

Armed police have surrounded a house in Greater Manchester after a gunman took a woman and two children hostage.

Neighbouring homes have been evacuated after the man locked himself inside the house in Oldham in the early hours of Tuesday morning.

Greater Manchester Police said the children were "now safely out of the address" but that the woman remained inside.

Specially trained police negotiators were at the house and in talks with the gunman.

Officers were called at 3.15am to reports the armed man had locked himself inside the house in Pemberton Way with the woman and children.

The children, said to be aged one and six, were later allowed to leave through a downstairs window, according to the Manchester Evening News.

Nearby homes were evacuated "as a precaution," police said, amid reports from neighbours that the man had "cut through a gas pipe".

Chief Superintendent Neil Evans, territorial commander for Oldham, said: "We are continuing in our efforts to bring this situation to a safe resolution and we have police negotiators at the scene currently engaging with the man inside the property.

"Our number one priority is the safety of all those involved, as well as other members of the public and as a result the decision was made to evacuate a number of nearby addresses as a precaution.

"I would like to thank members of the public for their cooperation this morning however it is imperative that this continues as we focus all our efforts on resolving the incident. I would therefore ask that people continue to avoid the area as much as possible.”

Engineers isolated to gas supply to about 50 houses after the man reportedly threatened to cut a pipe (Iram Ramzan/Oldham Evening Chronicle)

The road has been cordoned off by police, with firefighters, paramedics, and staff from the National Grid also on the scene.

Engineers have isolated the gas supply to between 40 and 50 nearby properties.

Dozens of residents have taken refuge in a local pub after being evacuated from their homes.