"We've recovered 20 bodies. Most them had been brutally hacked to death with sharp weapons," Brigadier General Nayeem Ashfaq Chowdhury said.
Earlier it was reported that a group of armed people have attacked a restaurant in the Bangladeshi capital of Dhaka and taken hostages.
On Friday, Daesh terrorist group claimed responsibility for hostage taking inside a cafe located in Dhaka's diplomatic quarter.
A special police operation to free the hostages has finished, according to local media reports. A total of 13 people have been rescued, while six attackers were killed and one captured, Bangladeshi Prime Minister Sheikh Hasina said, as quoted by the Dhaka Tribune newspaper. The Bangladeshi police lost two officers during the operation, according to reports.
"Three of those who were rescued were foreigners, including one Japanese and two Sri Lankans," the army spokesman said.