Eleven suspected gang members armed with high-calibre rifles have been killed after Brazilian police reportedly foiled a coordinated attempt to blow up ATMs to steal the money inside.

Key points: The gang of 25 had been targeting ATMs around Sao Paulo

The gang of 25 had been targeting ATMs around Sao Paulo One of the ATMs blown up was at a bank next to a police station

One of the ATMs blown up was at a bank next to a police station They had five armoured cars, high-calibre rifles and body armour

Sao Paulo's Public Security secretariat said approximately 25 suspects were involved in the attempts to blow up the machines, a common type of crime in the country.

One of the banks was located next to a police station.

One police commander told local television the criminal group was "prepared for war" and, aside from arriving in five armoured cars, were armed with high-calibre rifles and body armour.

Police arrived at the banks and confronted the assailants, who fled and led police on a shootout through the city of Guararema, located about 60 kilometres east of central metropolitan Sao Paulo.

The suspects broke into a home at one point and held residents hostage, "but police managed to free them", a note from the secretariat said, without providing more details.

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No police were injured in the operation and at least three suspects were arrested.

Police commander Mario Silva told local television the criminal group was under continuing surveillance.

"They had no intention of handing themselves over," he said.

New Sao Paulo Governor Joao Doria, who has pledged to crack down on crime with violence, said the officers involved in the shooting should be celebrated.

"Criminals who use shotguns, assault weapons and machine guns are not out for a stroll. They were out to rob and create victims," Mr Doria told GloboNews.

"I congratulate the policemen who acted and put more criminals in the cemetery."

Mr Doria supported pro-gun far-right President Jair Bolsonaro in October's election.

Mr Bolsonaro celebrated the policemen for their "quick and efficient action" in Guararema.

"Eleven criminals were killed and no innocents were wounded. Good job!" he said.

Crime is rife in Brazil, where more than 60,000 people died in violence last year.

The country's police have long been accused of extra-judicial killings and violence.

ABC/wires