Updated

The latest on the Melbourne siege (all times local):

12:15 p.m.

Australia's prime minister says he will discuss with state leaders changing state laws so that dangerous criminals are not released from prison early on parole.

Police say the gunman who killed a man and wounded three police officers in a shootout Monday had been paroled in November after being sent to prison for arson and other crimes. Yacqub Khayre also was acquitted of a Sydney terror plot in 2010 and police say the violence he carried out in Melbourne was considered an act of terror.

Prime Minster Malcolm Turnbull told reporters: "There have been too many cases of people on parole committing violent offences of this kind."

Turnbull has a meeting with state leaders on Friday to discuss counterterrorism issues including how to protecting mass public gatherings from attack.

10:45 a.m.

Police have named the gunman killed in what they says is a Melbourne terror attack as Yacqub Khayre.

The 29-year-old Somali-born refugee was one of two men acquitted by a jury in 2010 of plotting a suicide attack against a Sydney army base. Another three were convicted of conspiring to plot the terrorist attack. Police thwarted that plot before it could be executed.

Khayre was released from prison on parole in November after serving sentences for arson and violent crimes unrelated to extremism.

8:45 a.m.

Australian police say a shootout in which two men died, three police officers were wounded and a female hostage was freed is being treated as a terror attack.

Three police were wounded before they shot dead a gunman who killed a man and took a woman hostage on Monday in the Melbourne suburb of Brighton.

Victoria state Police Chief Commissioner Graham Ashton said on Tuesday the gunman had been implicated in a thwarted suicide attack at a Sydney army barracks in 2009.

Islamic State movement has claimed responsibility for the violence.