A spokesman for the police, Captain Wellington Moreira, confirmed that initially, six people were being held hostage.
At 3:34 pm, the first hostage, identified only as Sergio, was released. Another hostage was identified as a woman named Lucia, the owner of the bar.
The military and special police forces continue to negotiate with the man in a bid to release the other hostages.
The suspect has reportedly had a quarrel with the bar's owner.
The street is being blocked at the moment.