German police have arrested a man who was holding two people hostage at the old town hall in Ingolstadt in Bavaria.
The two captives have been released unharmed following a raid by armed officers. The 24-year-old hostage taker has been injured and taken to hospital.
The building was cordoned off after the siege began at around 09:00 local time (07:00 GMT).
The situation forced German Chancellor Angela Merkel to cancel a planned campaign visit to the town.
A police commando unit stormed the building at 17:50 local time (15:50 GMT), freeing the hostages and shooting their captor.
His injuries are not believed to be severe.
A third hostage – deputy mayor Sepp Misslbeck – had been released earlier, five hours after the siege began.
The assailant, a homeless man with a history of mental health problems, was reported to have been stalking a woman employed at the town hall for the past year, and as a result was banned from the building.