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Police shot dead gunman Yacqub Khayre on Monday after he killed a man in the apartment block and held a woman hostage inside. Two police officers are being treated in hospital after being shot while trying to get into the flat. ISIS' Amaq news agency identified Khayre as a 29-year-old Australian of Somali heritage.

SkyNews*Twitter Police have said that there is a hostage situation in Melbourne

Police said they were investigating whether Khayre had any established links with the group. He was acquitted of a plot to attack a Sydney army base in 2009 and was on parole for a violent home invasion at the time of Monday's siege. Australian PM Malcolm Turnbull said: "This terrorist attack by a known criminal, a man who was only recently released on parole, is a shocking, cowardly crime. "It is a terrorist attack and it underlines the need for us to be constantly vigilant, never to be deterred, always defiant, in the face of Islamist terrorism."

Melbourne hostage situation: Police shoot gunman dead and bomb squad on-site Mon, June 5, 2017 An ongoing hostage situation is unfolding Brighton, Melbourne after police were called to an explosion. At least one person is dead Play slideshow AFP/Getty Images 1 of 19 A bomb disposal expert on the scene

freediveguy Police have confirmed that it is a hostage situation in Melbourne

Victoria state Police Commissioner Graham Ashton said Khayre had arranged to meet a female escort in the block of apartments. After shooting and killing a staff member when he arrived, Khayre then held the woman hostage for several hours. He then burst out of the building and engaged police in a firefight, during which he was killed. Khayre reportedly phone local TV station 7 News Melbourne during the seige saying: “This is for IS.” Deputy Commissioner Andrew Crisp said: “I believe a phone call may have been made by some person to Channel Seven. “We will be working with Channel Seven in relation to that call.”

@Melbourneinform A woman has been held hostage in Melbourne

According to the statement from the police, they located the body of a man who was shot in the foyer of the building. Deputy Commissioner And Crisp said: “Just before 6pm, a male has exited one of the serviced apartments and began firing at police members. “Police members returned fire and as a result of that fire, the man who exited the serviced apartment was fatally shot.” The female hostage is now in the care of the police.

@MehdiMnaouar The hostage situation is in a Melbourne suburb