At least one person died on Monday in the Australian city of Melbourne during a hostage situation that police are reportedly investigating as a possible terror attack.

According to local media reports, police were called to the city’s Brighton neighborhood after receiving reports of an explosion.

In a statement, police said that upon arriving at the scene, officers found the dead man’s body.

Get The Times of Israel's Daily Edition by email and never miss our top stories Free Sign Up

“On arrival they located the body of a man who appears to have been shot in the foyer of the building,” The Australian quoted police as saying.

After police cordoned off the neighborhood, officers attempted to convince the attacker to release a woman he was holding hostage, Sky News reported.

After sounds of “severe gunfire” were heard, the attacker was reported to be dead, while two officers were said to have been wounded during the exchange, according to Sky News.

Police are reportedly investigating whether the incident was terror-related.