25 raids were carried out on homes in Sydney and Brisbane

Last week the nation's biggest ever terror raids saw 2 people arrested

Some prisons have banned prayers amid fears the unsupervised time is being used by inmates to plot

One of Australia's toughest jails was in lockdown on Sunday after Muslim inmates shouting 'Allah Akbar' sparked a riot.

Prison officers at Goulburn jail, in NSW, were forced to use tear gas to control inmates, who were armed with homemade weapons, when they broke down an internal fence and went on the rampage.

The Daily Telegraph reports the worst Australian prison riot in 10 years erupted when a number of the prison's Muslim inmates refused to line up for the afternoon muster after privileges were denied.

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One of the worst prison riots in years took place at Goulburn Jail in NSW on Saturday

The violence comes just days after the country's biggest ever terror raids - in which numerous homes were targeted before dawn - and amid reports jihadist cells are plotting attacks from inside NSW prisons.

But the a spokesman for Corrective Services NSW said the weekend's riot was not religiously motivated and officials 'had no indication the disturbance was in any way prompted by religious beliefs'.

'Inmate unrest began about 3pm on Saturday after staff informed inmates in that yard that a good behaviour privilege was being withdrawn, due to earlier verbal abuse of correctional staff,' the spokesman told Daily Mail Australia.

This comes as hundreds of police carried out raids across Sydney arresting two men on terror-related charges, while the riots inside the jail are suspected to have been religiously motivated

'Corrective Services NSW has deployed chemical munitions to subdue inmates in a yard at Goulburn Correctional Centre’s mainstream prisoners' area.'

Seven inmates were segregated following the brawl, and four prisoners - including one who was segregated - were treated for minor injuries.

It was also revealed on Sunday prisoners at ­Supermax, the high security compound on the jail's grounds, are able to plot acts of terror from behind bars because they are allowed to write letters, make phone calls and have visits - even though they are in 'confinement'.

The prison's AA classification was introduced especially for convicted terrorists like Mohammed Elomar, Mazen Touma and Faheem Lodhi in 2008.

The riot did not take place at the Supermax facility at Goulburn Jail where convicted terrorists are serving time

Mohamed Ali Elomar (left) is currently serving time at Supermax, while Khaled Sharrouf (right) was previously convicted but fled to Syria when he was released

These men are considered to be so dangerous that they are escorted to court ­appearances and other appointments by guards armed with guns while being supported by helicopters and armoured vehicles.

Despite this, a high ranking former official told the Sunday Telegraph: 'They are kept in isolation but that means nothing in jail.

'Messages are passed on in many ways. They are in segregation wings but can still communicate with the outside world. It is not hard because they still get ­visitation rights, which are their first outlet,' he said.

Prison authorities have banned Islamic prayer meetings in some Sydney jails after intelligence found some key jihadist figures are still operating from behind bars.

Khaled Sharrouf served time in Supermax over a terrorist plot before fleeing to fight with IS militants in Syria

A group of Muslims were stopped from attending prayer on Friday at Dawn de Loas Correctional Centre in Silverwater in Sydney's west, as there are concerns the unsupervised meetings could be used for alternate purposes, The Daily Telegraph reported.

A prison spokesperson told the newspaper there would be no blanket ban on prayers across the state, but a senior official said ways to extract information from the meetings has been discussed.