The majority of tourists were evacuated.
Anti-terrorist units have entered the museum.
13.19 The Foreign Office has updated its travel advice to avoid the area until further notice:
Latest update: Summary - there are reports of an incident at the Tunisian parliament building and Bardo Museum in Tunis; you should avoid the area until further notice and follow the instructions of the Tunisian security authorities
Meanwhile more images have emerged of counter-terror operations at the scene, which are believed to be ongoing:
13.14 Two Britons are among those killed, according to reports, along with one French and one Spanish. The Telegraph has not been able to verify this information.
Radio Mosaique is reporting 10 hostages are still being held.
13.13 The hostage situation is taking place at the Bardo Museum, adjacent to Tunisia's parliament building, where gunfire was heard earlier.
13.12 Two injured tourists have been taken to the nearby Charles Nicolle hospital:
13.08 A counter-terror operation is under way, according to local reports, with images emerging on social media:
13.03 It is also unclear who the attackers are. Tunisia has struggled with violence by Islamic extremists in recent years, including some linked to Islamic State of Iraq and the Levant (Isil).
A disproportionately large number of Tunisia recruits have joined Isil fighters in Syria and Iraq.
According to ICSR , 1,500-3,000 Isil fighters are from Tunisia.
12.55 The nationalities of the seven foreign tourists killed, and those believed to be still held by gunmen, are not yet known.
More than 420,000 British nationals visited Tunisia last year, according to the Foreign Office.
12.46 Two explosions from grenades thrown by the terrorists have been heard at the scene, according to Tunis-based journalist Med Dhia Hammami:
12.39 Seven foreigners and one Tunisian have been killed in the shooting attack, says AP.
12.37 Eight tourists have been killed in the attack, Reuters reports, citing a government official.
12.32 Images published on social media appeared to confirm reports that up to 30 hostages were being held in the museum.
12.04 Tunisian security forces have surrounded at least two militants believed to be holding hostages at a museum in the country's parliament grounds.
A spokesman for the country's interior ministry said tourists had been taken hostage at the museum, believed to be the Bardo museum in Tunis, and that one person was injured.
Private radio station Radio Mosaique said that three men dressed in military-style clothing had launched the attack.
Shortly before, exchanges of gunfire were heard at Tunisia's parliament building, the country's state news agency reported.
Parliamentary committees suspended their meetings as MPs were ordered to assemble in the main chamber, Islamist MP Monia Brahim told AFP.
A witness near the parliament told Reuters a large police presence was moving to evacuate the building.
The Bardo museum chronicles Tunisia's history and includes one of the world's largest collections of Roman mosaics.
Tunisia has struggled with violence by Islamic extremists since overthrowing a dictator in 2011.
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