SHANGHAI - A three-year-old girl is being held hostage by a middle-aged man at a Kentucky Fried Chicken outlet in Shanghai, official Chinese media reported on Wednesday.

Police have been negotiating to free the toddler since the unidentified man in his 40s took her hostage at about 3:10 p.m. (0710 GMT), the official Shanghai news portal www.eastday.com reorted.

Shanghai television footage showed a large crowd in front of the outlet, which was cordoned off by police.

A Reuters witness estimated that at least 300 to 400 people, including armed policemen in uniform, had gathered around the restaurant, blocking nearby traffic.

At least 100 policemen rushed to the scene, the eastday.com report said.

The report quoted people escaping from the restaurant as saying that a man holding a knife took the baby hostage when her mother stepped away to buy food.

Media reports gave no information about the man's motives or any demands he may have made to police.

No representatives of the Shanghai city government were available to comment on the reports.