The office of Foreign Affairs Minister John Baird is urging all Canadians in Sydney, Australia to "use extra precaution" amid an ongoing hostage situation in the city’s downtown core.

“We continue to follow reports closely and are in close contact with our missions in Australia,” said Baird’s spokesperson Rick Roth.

“We urge all Canadians in Sydney to use extra precaution and limit their movements as authorities handle this situation.”

On Twitter, Baird also said he had been in contact with Australian Foreign Affairs Minister Julie Bishop to express his thoughts and prayers.

Prime Minister Stephen Harper also offered his support to Australians on Twitter.

“Canada's thoughts and prayers are with our Australian friends,” he tweeted Sunday night.

New South Wales Police have described the situation as an “armed incident,” closing off a number of streets surrounding the Martin Place business district in the country’s largest city.

The incident appears to be taking place inside the downtown Lindt Chocolat Cafe. Police said they were trying to make contact with people inside the cafe.