Three men are in police custody following a siege at a brothel in Sydney’s south-west.

Police were called to Men’s Paradise, which is described as a “five-star gentlemen’s club”, in George Street, Liverpool, about 8:30am (AEDT) after it was reported armed men had taken hostages inside.

At least two of the men were led away from the scene in handcuffs after they were detained in the building by heavily armed police.

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Police take a man into custody at the scene.

The men, aged 36, 40 and 44, were taken to Liverpool police station to be interviewed by detectives.

Police said two women and two men, all believed to be employees, left the building during the operation and were not injured.

Footage from the scene also showed a woman being escorted from the building by a police officer about 11:40am (AEDT). She was taken behind a police van where she spoke to officers.

Inspector Peter Gillam, commander of the Liverpool Local Area Command, said police were trying to establish whether the men in custody had taken the employees as hostages during the siege.

“We’re still trying to work through that information at this point in time, whether they were actually kept against their will,” Inspector Gillam said.

“As you can appreciate this operation has just finished. We still have to get a lot of information from those involved to find out exactly what happened.”

Inspector Gillam also confirmed that one of the men taken into custody had a weapon.

“The initial information was that a firearm was involved. The premises is a crime scene,” Inspector Gillam said.

“We still have to search that premises to see what we find in respect of any firearm.”

Witnesses describe the ‘movie-style’ drama

Inspector Gillam said police had not established a motive for the incident and they were investigating the possibility that it was a robbery.

“Well, nothing’s been dismissed at this point in time until we get all the information, anything’s on the table.”

Earlier, negotiators tried to speak to the men in the building amid fears they were armed and had taken hostages.

“Negotiators made attempts to negotiate. During the course of the operation some left the premises of their own accord, we believe,” Inspector Gillam said.

“They were taken away straight away and debriefed so we can get more information.”

One witness, Sarah Foreman, said tactical response police stormed the building soon after she arrived.

“There were five [police officers] with a man in cuffs who they took away,” Ms Foreman said.

“Probably about 15 minutes later, the same thing – a second man in cuffs and they took him away.

“Not long after that, a hostage was released and she was walked up the street to an ambulance by police.”

Ms Foreman said the drama was “like a movie”.

“It was pretty scary,” she said.

“Like this is very much the business end of Liverpool, it’s not something that you would expect to happen and it must be quite scary for the girls that are caught up in it all.

“It’s all very movie-style, all the tactical guys in their balaclavas, and you sort of wonder who the robbers are.”

Sam Bruzzese, who works at a nearby real estate agency, said officers had blocked public access to the area.

“We have the police here, possibly a SWAT squad or something like that is here now,” he said.

“Looks like they’re trying to make a move.”

A crowd of more than 100 onlookers was kept away from the scene by police.

The Department of Education said there was no disruption to nearby Liverpool Primary School.

The operation involved officers from Liverpool Local Area Command, the Tactical Operations Unit and specialist NSW Police negotiators.