Local authorities have begun talks with armed hostage-takers at a school in southern Russia's North Ossetia republic Wednesday, Itar-Tass news agency reported.

They released a video cassette showing what has been going on inside the school building, said the crisis management center led by North Ossetian President Alexander Dzasokhov said.

Eleven people, mainly parents of the children, were wounded by fire from the school building, Interfax reported.

An Interior Ministry officer said earlier that at least three civilians were killed during the shootout in the event.

The militants has demanded the release of all terrorists arrested in the hit-and-run raids on crucial facilities in Russia's Ingushetia republic on June 21-22.

More than 200 heavily armed guerrillas, believed to be Chechen rebels, staged simultaneous attacks on police and government sitesin Ingushetia, killing over 90 people with some 100 others injured.

The hostage takers have also demanded the arrival of North Ossetian President Alexander Dzasokhov, Ingush President Murat Zyazikov and Doctor Leonid Roshal, North Ossetian Emergency Situations Minister Boris Dzagoyev said.

Roshal acted as a mediator between hostage takers and Russian authorities in a Moscow theater hostage-taking crisis in October 2002.

Roshal said he will soon leave for the city of Beslan where theseized school is located to hold talks with the militants.

Russian President Vladimir Putin has cut short his holiday and returned to Moscow from the Black Sea resort of Sochi.

Putin is holding an emergency meeting with heads of law enforcement agencies. He had held a phone conversation with Dzasokhov on his way back.