Dhaka Restaurant Siege: 20 People Killed

Twenty people have been killed after gunmen took dozens of hostages during a 10-hour siege at a restaurant in Bangladesh's capital.

"Most of (the hostages) were killed mercilessly by sharp weapons," Army Brigadier General Nayeem Ashfaq Chowdhury said.

Another army officer, Lieutenant Shahab Uddin, told the AFP news agency: "All 20 of the hostages who were killed were foreigners."

Among the dead were nine Italians, seven Japanese, three Bangladeshis, one American and one Indian national.

It is thought that eight or nine attackers stormed the Holey Artisan Bakery in Dhaka's diplomatic zone late on Friday.

One kitchen staffer said the attackers were armed with guns and bombs, entering the building at around 9.20pm local time as foreigners and locals dined out during the Ramadan holy month.

Initially firing blanks, they ordered staff to switch off the lights before draping black cloths over security cameras, according to a survivor who spoke with local news channel ATN.

He and others managed to escape by running to the rooftop or out of the back door.

For those remaining inside, however, their fate depended on whether they could prove themselves to be Muslims, according to the father of a Bangladeshi who was rescued with his family.

Rezaul Karim said: "The gunmen asked everyone inside to recite from the Koran.

"Those who recited were spared. The gunmen even gave them meals last night."

The others, he said, "were tortured".

A massive firefight erupted outside the cafe, in the Gulshan area of the capital, which saw six gunmen killed. Two police officers also died.

Thirteen hostages were rescued, including an Argentinian, two Sri Lankans and two Bangladeshis. Japanese officials have said that one of their citizens was also rescued with a gunshot wound.

Of the 26 people injured in the siege, 10 are in critical condition in hospital and six are on life support. Most are police officers but one is a civilian, according to hospital staff.

Deputy chief cabinet secretary Koichi Hagiuda said seven other Japanese citizens had been eating together at the restaurant, but officials had been unable to contact them.

Italian media has reported that seven Italians were in the restaurant when the attack began.

Bangladesh Prime Minister Sheikh Hasina said one of the militants had been arrested.

"Because of the effort of the joint force, the terrorists could not flee," she said.

Islamic State claimed responsibility for the attack, according to the SITE Intelligence Group.

The Amaq news agency, which is affiliated to IS, posted pictures said to show hostages' bodies, but the images' authenticity could not be confirmed.

The restaurant is located near a small hospital as well as the Nordic Club, a private members' club popular with expats.

There has been a string of recent attacks on religious minorities and secular activists by suspected Islamist militants in Bangladesh, although that country's government has previously denied IS has a presence there.

Earlier on Friday, a Hindu temple worker was hacked to death in southwest Bangladesh by three assailants.