SYDNEY (Reuters) - Airlines said on Monday that flights are landing and taking off normally at Sydney Airport, but a diversion is in place around the city's central business district after reports that a gunman had taken hostages in a cafe in the centre of the city.

The government-owned regulator, Airservices Australia, confirmed normal operations at both the domestic and international airports south of the city.

Qantas Airways Ltd said planes were avoiding flying over the central business district but were landing as normal.