Hostages flee Lindt cafe Photo: Andrew Meares

Two people, including the gunman, are dead as the Sydney cafe siege ended in a volley of gunfire shortly after 2am on Tuesday.

Heavily armed police were seen ramming their way into the Lindt Chocolat Cafe in Martin Place at 2.03am as dozens of gunshots rang out.

A woman is carried away from the Lindt Chocolat Cafe in Martin Place. Photo: Andrew Meares

Fairfax Media has confirmed that one of two people killed was Man Haron Monis, the self-described cleric who had been holding more than a dozen people hostage inside the popular cafe since 9.45am on Monday.

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Police have not officially commented on the deaths, and it is not yet known whether the police raid was in response to the gunman firing shots. 

Shortly before police entered the building, six hostages were seen running free from the cafe, 16 hours after they were first taken captive. Seconds later, another hostage was freed.

Freed hostages run from the Lindt Chocolat Cafe in Martin Place. Photo: Andrew Meares

Their release was followed seconds later by a dramatic police raid that was shown live on television. 

Footage showed a group of tactical officers storming into the cafe as gunshots rang out. Many flashes of light could be seen coming from inside the doorway.

A police officer could be seen shielding one hostage and running away from the cafe entrance. A short time later another hostage could be seen exiting the building.

A police officer could be heard telling people to retreat for their own safety, as there was "live ammunition" being used.

At least four hostages were injured.

Royal North Shore Hospital confirmed they were treating a woman in her 40s for a gunshot wound to her leg. She was in a serious but stable condition.

Another woman, who was also believed to be a hostage, was seen being wheeled into Royal Prince Alfred Hospital on
a stretcher just after 3.30am.

Six detectives also arrived at the hospital, while four ambulances were parked in the emergency department bays.

Monis, 50, is no stranger to the NSW police or the judiciary.

He first came to attention of police when he penned poisonous letters to the family of dead Australian soldiers seven years ago.

Last year he was charged with being an accessory to the murder of his ex-wife, a mother of two.

Most recently, he was charged with more than 50 allegations of indecent and sexual assault relating to time allegedly spent as a self-proclaimed "spiritual healer" who dealt with black magic at a premises in western Sydney more than a decade ago.

It is understood Monday's incident followed an unsuccessful, last-ditch attempted in the High Court on Friday to have the charges overturned.

Monis is not believed to have any formal links to any terror organisation. 

Families of those taken hostage were waiting for news outside St James' Supreme Court precinct when the siege came to a head.

It had been an agonising 16-hour wait, since Monis first entered the cafe on Martin Place during Monday morning's peak.

At 9.44am on Monday, a woman raised the alarm with police after seeing a man outside the cafe carrying a blue sports bag with a gun inside.

Channel Seven, which is located opposite the cafe and was broadcasting live at the time, showed footage of hostages with their arms in the air. Two of the hostages were forced to hold up their captor's flag - declaring "There is no god but Allah" - in the window.

Police quickly evacuated the area, and workers across the city were sent home early.

About 4.35pm on Monday, the first two hostages ran from the cafe's main doors – a mature man followed by a man in his 30s, who appeared to punch the air. Soon after, a third man, dressed in the cafe's uniform, emerged from a side door.

About 4.58pm on Monday, two women dashed from the cafe.

It was then mainly quiet until Tuesday morning's dramatic raid.

More to come.