A 69-year-old man has been charged over a siege in Rye on Victoria's Mornington Peninsula, where he allegedly held two women at gunpoint in a cafe for almost eight hours.

The siege on Saturday shut down a section of the town's busy shopping strip and Point Nepean road, as heavily armed police converged on the cafe.

The man allegedly took two women hostage at around 7:45am and held them captive.

They were released unhurt at 3:20pm.

Police charged the man with two counts of unlawful imprisonment and firearms offences.

He has been remanded in custody until his appearance in the Frankston Magistrates Court on Monday.

Superintendent Glenn Weir said he was pleased the police operation ended peacefully.

"No-one's been injured which is a great result as far as we're concerned," he said.

"The skill of the negotiators and our tactical operators has been shown to be successful ... even though it takes a long time and it's disruptive to the traffic and the local area in the start of the busy summer season."