Motorists and public transport passengers travelling through Sydney's CBD can expect significant delays getting home as the Martin Place siege continues to paralyse the city. 

The police response to the hostage situation at the Lindt Chocolat Cafe at Martin Place has shut down an area from George to Macquarie streets and from Park Street to Circular Quay.

Police have blocked streets in the city. Photo: Peter Rae

The Transport Management Centre has told passengers and motorists to leave at their regular time but to expect heavy traffic and long waits. 

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Contrary to some earlier media reports, the Sydney Harbour Bridge has not been closed but access from York Street and Harbour Street has been blocked; the Cahill Expressway was closed in both directions. 

"Citybound motorists are urged to continue to avoid the Sydney CBD and the Sydney Harbour Bridge as the police operation continues. Motorists can consider using the Sydney Harbour Tunnel and the Gladesville Bridge as alternative routes," the TMC said in a statement. 

A map showing the siege location in Sydney's CBD, and some of the surrounding prominent buildings.

"Motorists travelling over the Sydney Harbour Bridge continue to be diverted via the Western Distributor."

Trains have resumed but are skipping Martin Place station. Ferry and light rail customers are advised to travel as normal. 

The following bus routes are affected.

Roads affected by closures in the CBD due to the police operation in Martin Place.

•   All eastern suburbs services that normally start from Circular Quay including Castlereagh Street services will start from St James Station in Elizabeth Street.

•   Newtown services 422, 423, 426 and 428 heading out of the city via Castlereagh Street will operate on George Street instead.

•   All CDC/Hillsbus and Forest Bus services will be picking up from Clarence Street instead of the QVB.

Public transport passengers can use their tickets across any transport type. 

A spokeswoman for Sydney Airport said flights out of the city were unaffected.

Earlier reports that Sydney airspace had been closed were incorrect.

A spokeswoman for Airservices Australia said: "Sydney operations are continuing and Sydney airspace has not been closed."

This was confirmed by a spokesman for federal Transport Minister Warren Truss.

"There are choppers in the air and air traffic is being rerouted accordingly," the spokesman said. 

Keep up to date with traffic conditions here.