Police: Hostage situation in German city of Dresden

German police say a hostage situation is underway in the eastern city of Dresden, following reports of shots fired on Saturday morning.

Police urged people to avoid an area in the city centre and ordered Dresden's Christmas market to remain closed.

Radio Dresden earlier reported that shots had been fired at a building near the main train station.

German tabloid Bild reported that a woman was killed. Police couldn't immediately be reached to confirm either report.