Gunmen killed in raid to rescue hostages held in Bangladesh

UP TO six gunmen have been killed in a café in Bangladesh capital Dhaka, after the men took about 20 diners hostage last night.

Bangladeshi police have reportedly killed the six "terrorists" and the Islamic State group has claimed responsibility in statements released online.

Local media have reported the raid began after 9pm at night (local time), and ended several hours later after a fire-fight between police and the attackers.

Three hostages were foreigners, but their home nations has not been confirmed, while at least another 13 were Bangladeshi.

Foreign Minister Julie Bishop said this morning that she believed all Australian embassy staff in Bangladesh were safe.

The Department of Foreign Affairs has also confirmed no Australians were among those taken hostage.