SYDNEY (Reuters) - Dozens of hostages were trapped inside a central Sydney cafe on Monday, with local television showing some being forced to hold up a black flag with white Arabic writing in the window, raising fears of an attack linked to Islamic militants.

Prime Minister Tony Abbott, who has warned of militant plans to attack Australian targets, said he was convening a meeting of the cabinet's national security committee for a briefing on the hostage situation at the Lindt Cafe in the country's commercial capital.

"Police are dealing with an armed incident and specialist officers are attempting to make contact (with) those inside a cafe," New South Wales Police said in a statement.

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