The attackers who took up to 400 children and adults hostage in Russia's North Ossetia earlier Wednesday have refused to talk with the leader of the Muslim community in the region, Mufti Ruslan Valgatov, the Itar-Tass newsagency said.

"He is trying to establish a contact with the terrorists," Itar-Tass quoted officials in the city of Beslan as saying.

The attackers, however, refused to negotiate with Valgatov and insisted on talks with the president of Russia's North Ossetia republic.

North Ossetia is predominantly Christian but has a small Muslimcommunity.

The adults and school children were kept captive when about 25 to 30 attackers with explosive belts and guns stormed the school in a covered truck of the type often used for troop transport.

The attackers warned that they would blow up the school in Beslan if police tried to enter the school.

The hostages were rounded up in the school gym and ordered to face the floor, according to Itar-Tass.

Attackers threw a video tape out of the window, demanding the release of all terrorists arrested in the raids in Russia's Ingushetia republic on June 21-22.

At least three civilians were killed during the seizure in the region bordering the volatile Chechnya, a duty officer at the regional Interior Ministry was quoted by Itar-Tass as saying.

"One body lies near the entrance and two others are on a road near the fence," he said, adding that the militants opened fire aspeople tried to approach to recover the bodies.

The footage on television channel NTV showed attackers in camouflage with guns control positions around the school and othermen in civilian dress with light automatic rifles pace nervously.

It also showed a girl in a floral dress and a red bow in her hair run around a corner after escaping from the school, which just opened again after the summer vacation.

Up to 50 children, who had apparently hidden during the seizure,managed to escape from the school, Itar-Tass said.

Just before the seizure, a large number of parents had accompanied their children to a ceremony marking the start of a new school year.

Meanwhile, Russian President Vladimir Putin cut short his seaside holiday on Wednesday and headed back to Moscow.

The Interfax news agency quoted the Kremlin as saying that Putin had discussed the crisis with his interior minister and the head of the FSB security service.