A hostage situation at a bank branch in the German city of Regensburg has ended with one person dead and a suspect in custody, according to police reports.

Authorities confirmed on Thursday that the incident, which began earlier in the day, involved a knife attack that triggered a major security response.

Special forces were deployed to the scene to negotiate and eventually resolve the standoff.

The victim was identified as a man who died from injuries sustained during the attack.

Police have not yet released details about the suspect's motive or identity, but investigations are ongoing to determine the circumstances leading to the violence.

The incident has drawn attention to security measures at bank branches across Germany, with regulators likely to review protocols in light of the attack.