Heavily-armed police have cordoned off part of the town of Ede and urged people to "stay away" from the area, adding: "Stay inside and don't come and watch".

Around 150 nearby homes have been evacuated while authorities deal with "a hostage situation involving several people," police said on X.

Officers say three hostages who were being held in Cafe Petticoat, a popular bar and nightclub, have been released, but added the "situation is not over".

Local reports said the freed hostages were employees of the nightclub and were seen fleeing the building with their hands above their heads.

Earlier, as nearby homes were evacuated, police said there was a person in the area "who could be a danger to themselves or others".

National newspaper de Telegraaf reported the man who took people hostage was armed with weapons and explosives, citing several anonymous sources.

The report says the man allegedly entered the nightclub at closing time and "threatened to blow the place up".

Police spokesperson Simon Klok told the Associated Press people were being held hostage in Ede but declined to give more details about the incident or say how many people were involved.

There is no indication the hostage situation is terror related, police said in a statement on X.

Images from the rural market town in the eastern Netherlands, which is 53 miles (85km) from Amsterdam, showed police officers and firefighters on the streets in the cordoned-off area.

The municipality said that all shops in the centre of Ede would remain closed.

The town's mayor Rene Verhulst said in a statement: "Three hostages have just been released, but the situation is still ongoing. A terrible situation for all these people.

"My concern and thoughts go out to them and their loved ones. I hope that the situation is now resolved quickly and safely," Mr Verhulst added.

"In addition to my concern for the hostages, I understand that this has an impact on all people who have suddenly had to leave their homes, as well as on the entrepreneurs in the centre, as all shops remain closed for the time being.

"I hope for their understanding, especially on this day before Easter. The authorities involved are making every effort to resolve the situation in a safe and peaceful manner. As soon as more information becomes available, we will share it with you."