The two hostages, who died in the Sydney cafe siege on Monday, have been named as the cafe manager Tori Johnson and Katrina Dawson, a barrister and mother of three.

Both victims were Sydney citizens. They and the gunman who had held them hostage for 16 hours were killed as police commandos stormed the cafe.

According to unconfirmed reports, Johnson had tried to wrestle the gunman to the ground.

Paying tribute to the two hostages, Australian Prime Minister Tony Abbott said they were "caught up in the sick fantasy of a deeply disturbed individual".

Speaking at a news conference on Tuesday, Abbott described the hostage crisis at the Lindt Cafe as ugly and appalling and Sydney’s first “brush with terrorism” in 35 years.

Police are still looking into the motives behind the attack by self-described Muslim cleric Man Haron Monis, an Iranian refugee who was on bail facing charges of sexual assault. He was also known for sending hate letters to the families of Australian soldiers killed in missions overseas.