Baku. 5 December. REPORT.AZ/ The 69-year-old took the two women hostage at the cafe in Melbourne about 7:30am. Report informs citing the RIA Novosti.
He was armed with two low-calibre hand guns.
Superintendent Glenn Weir said the man surrendered after police negotiated with him to release the women.
"No-one's been injured which is a great result as far as we're concerned," he said.
"The skill of the negotiators and our tactical operators has been shown to be successful ... even though it takes a long time and it's disruptive to the traffic and the local area in the start of the busy summer season."
He said the man appeared to be the former partner of one of the hostages, a 45-year-old woman.
"The circumstances appear to be a combination of a family dispute between the male and one of the females, as well as a relationship breakdown and a business breakdown involved the cafe as well," he said.
He said the second woman, aged 32, worked at the cafe.
"The women are very upset, one of them - the former partner we'll allege of the offender - is very upset and she is being treated by Ambulance Victoria at this stage," he said.
"The other lady is fine, I've spoken to her myself and she is good."
He said the male was not injured in the incident and would be taken to Rosebud police station for questioning.