The lone gunman and two hostages were killed and four other people wounded when police stormed a Sydney cafe where 17 people were being held early Tuesday, authorities said.

The 50-year-old male who held out for more than 16 hours was shot and pronounced dead after being taken to hospital, New South Wales police said.

A man, aged 34, and a woman, 38, were also pronounced dead after being taken to hospital.

"It was the act of an individual," NSW Police Commissioner Andrew Scipione said at a press conference.