Sydney's Muslim leaders offered to help negotiate with terrorist Man Haron Monis in the early stages of his siege of Lindt Cafe, but were rebuffed by police.

Gathered at a Bankstown hotel to discuss recent terror raids with the Australian Federal Police on Monday as news broke of the siege, the leaders immediately volunteered their time at the scene.

Islamic Friendship Association of Australia spokesman Keysar Trad told The Sunday Telegraph he offered to speak to the gunman one-on-one — still unaware of his identity — to help placate him and bring an end to the stand-off.

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