Twenty people, most of them foreigners, were killed during an attack by suspected Islamist extremists on a Cafe in Bangladesh, officials say.

Gunmen stormed the Holey Artisan Bakery Cafe in the capital, Dhaka, late on Friday before troops entered almost 12 hours later.

Six of the attackers were also killed and one was arrested, a government spokesman said. The attack was claimed by the so-called Islamic State (IS).

Most victims were reportedly from Italy and Japan, and some of those rescued were from Japan and Sri Lanka. One young Indian woman was reported to be among the dead.

The Ministry of Foreign Affairs and Trade said earlier today there had been no reports of New Zealanders caught up in the standoff.