At least 27 people have been reported dead after Malian commandos stormed a luxury hotel in the capital Bamako with at least 170 people inside, many of them foreigners, that had been seized by Islamist gunmen.

The former French colony has been battling Islamist rebels for several years, and the jihadist group Al Mourabitoun, allied to al-Qaeda and based in the deserts of northern Mali, claimed responsibility for the attack in a tweet.

By late afternoon on Friday, ministerial adviser Amadou Sangho told the French television station BFMTV that no more hostages were being held.

But a UN official said UN peacekeepers on the scene had seen 27 bodies in a preliminary count, and that a search of hotel was continuing.

It was not clear whether any of the gunmen, who were said to have dug in on the seventh floor of the hotel as special forces advanced on them, were still active.

State television showed footage of troops in camouflage fatigues wielding AK47s in the lobby of the Radisson Blu, one of Bamako's smartest hotels and beloved of foreigners. In the background, a body lay under a brown blanket at the bottom of a flight of stairs.

The peacekeepers saw 12 dead bodies in the basement of the hotel and another 15 on the second floor, the UN official told Reuters on condition of anonymity.

He added that the UN troops were still helping Malian authorities search the hotel.

A man working for a Belgian regional parliament was among the dead, the assembly said.
Minister of Internal Security Colonel Salif Traor said the gunmen had burst through a security barrier at 7am local time, spraying the area with gunfire and shouting "Allahu Akbar", or "God is great" in Arabic.

Occasional bursts of gunfire were heard as the assailants went through the seven-storey building, room-by-room and floor-by-floor, one senior security source and a witness told Reuters.

Some people were freed by the attackers after showing they could recite verses from the Koran, while others were brought out by security forces or managed to escape under their own steam.

One of the rescued hostages, celebrated Guinean singer Skouba 'Bambino' Diabate, said he had overheard two of the assailants speaking in English as they searched the room next to his.

"We heard shots coming from the reception area. I didn't dare go out of my room because it felt like this wasn't just simple pistols - these were shots from military weapons," Diabate told Reuters by phone.

"The attackers went into the room next to mine. I stayed still, hidden under the bed, not making a noise," he said. "I heard them say in English 'Did you load it?', 'Let's go'."

The raid on the hotel, which lies just west of the city centre near government ministries and diplomatic offices, came a week after Islamic State militants killed 129 people in Paris, raising fears that French nationals were being specifically targeted.

Twelve Air France flight crew were in the building but all were extracted safely, the French national carrier said.

A Turkish official said five of seven Turkish Airlines staff had also managed to flee. The Chinese state news agency Xinhua said three of 10 Chinese tourists caught inside had been rescued.