Several Kalashnikov-wielding gunmen were on the run last night after a botched robbery attempt led to a dramatic shootout with French police close to the Belgian border.

A bank manager's wife and their two children - including an 11-month-old baby - were taken hostage during the siege, which ended after several hours when one of the armed men was killed.

Another was arrested but 'two or three other gunmen' fled the scene in the northern French town of Roubaix, local authorities said. The hostages were freed unharmed some three hours after the gun battle began at about 7pm local time on Tuesday evening.

Police said the incident was not believed to be linked to the terror attacks in Paris.

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Several Kalashnikov-wielding gunmen were on the run last night after a botched robbery attempt led to a shootout with French police close to the Belgian border. Police are pictured at the scene in Roubaix last night

A woman and her two children - including a baby - were taken hostage during the siege, which ended after several hours when one of the armed men was killed. Police marksmen are seen taking aim during the siege

Another was arrested but 'two or three other gunmen' fled the scene in the French town of Roubaix, the local authorities said on Tuesday evening

Emergency response: The hostages were freed unharmed some three hours after the gun battle began at 7pm

Police sources say the incident was not believed to be linked to the terror attacks in Paris earlier this month

It had been reported that armed men carrying AK-47s were said to be holed up in the home of a family they had been preparing to burgle, close to a service station in the town.

But it has now emerged that a manager at the Crédit Municipal bank was first approached by the gunmen and ordered to open a safe, according to the Guardian.

Police then spotted the robbers, although it is unclear at this stage whether the victim had managed to alert them or if they were patrolling nearby at the time, and a firefight broke out.

The armed men then fled before taking refuge in the bank manager's home, where they are said to have held his family hostage following a high-speed chase.

French SWAT teams surrounded the property before a lengthy stand-off ensued.

The area was cordoned off by police and a nearby neighbour said 'regular gunfire' could be heard.

Local authorities said tonight that the hostages were now in a 'secure place' while a police source confirmed that the three-hour operation was over and one suspect had been arrested.

The incident began after a failed heist close to a service station in Roubaix. Police are pictured at the scene

French SWAT teams surrounded a property where the hostages were held before a lengthy stand-off ensued

Local authorities said the hostages were now in a 'secure place' while a police source said the three-hour operation was over and that one suspect had been arrested

It comes as the whole of France remains in a state of heightened alert following the November 13 attacks in Paris in which 130 people died. Police sources said tonight's shootout was not believed to be terror-related

Roubaix is a town in northern France (pictured) which is about an hour west of Brussels. The town's mayor's office said the suspect or suspects 'carried out a robbery' after which they took hostages

It comes as the whole of France remains in a state of heightened alert following the November 13 attacks in Paris in which 130 people died.

However, a police source said tonight's drama was 'probably not terrorist related'. Another said it was an attempted robbery.

Frederic Fevre, prosecutor for the nearby French city of Lille, told reporters that one hostage-taker had been killed, and that police were hunting for other suspects who were on the run.

It is thought the hostage-takers were planning an armed robbery that went wrong, leading to a lengthy siege in a suburban area of Roubaix, on the corner of Gustave Delory Avenue and Vaillant Street.

One of the suspects opened fire at police with a Kalashnikov, prompting security forces to return fire, Mr Fevre said.

After two hours, a specialist police unit launched an assault on the house, freeing the captives, killing one of the suspects and arresting a second in the back garden, the prosecutor added.

Other members of the group got away, Mr Fevre revealed, adding that the precise number who had fled was unknown.

Frederic Fevre, prosecutor for the nearby French city of Lille, told reporters that one hostage-taker had been killed, and that police were hunting for other suspects who were on the run. Armed police officers are pictured

Armed men with AK-47s were said to be holed up in the home of a family they had been preparing to burgle

End of the ordeal: The hostage situation began at around 7pm local time but local authorities say it is now over

The three-hour operation took place on the corner of Gustave Delory Avenue and Vaillant Street (pictured)

Early reports suggested the situation began after a number of suspects were stopped at a security checkpoint

'It was a criminal operation' and not associated with terrorism, he said.

A source earlier told Reuters: 'An operation is underway after hostages were taken. Gunshots were fired and the neighbourhood has been cordoned off.'

The town's mayor's office said the suspect or suspects 'carried out a robbery' after which they took hostages. A special police unit was dispatched, the office said.

Early reports suggested the situation began after a number of suspects were stopped at a security checkpoint. According to Reuters, children were among the hostages.

Medical and fire services confirmed earlier that an operation was underway without giving further details.

Roubaix is where the suspected bomb-maker behind the Paris atrocities is originally from.

Mohamed Khoualed is accused of supplying the suicide vests and detonators used by ISIS militants in the French capital.

The 19-year-old turned himself in to police in the northern city of Lille last Wednesday.

It is thought the hostage-takers were planning a robbery, leading to an armed response from French police

A police source said that tonight's drama was 'probably not terrorist related'. Another said it was linked to an attempted robbery in the town

A police source said the suspects were holed up in the home of a couple they had been preparing to burgle. The area close to a service station (pictured) was cordoned off by police

Roubaix is where the suspected bomb-maker behind the Paris atrocities, Mohamed Khoualed (left) is originally from. Police are pictured arriving at the scene of the incident this evening (right)