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At least one other Australian is thought to have been killed in the violence in India, the federal government says.
Foreign Minister Stephen Smith said eyewitness accounts suggest another Australian has been killed at the Oberoi Hotel in Mumbai, but officials were still awaiting confirmation.
"We've got information effectively from eyewitnesses which puts another Australian life we think at very grave risk," Mr Smith told ABC Radio on Friday (AEDT).
"We are not in a position to confirm, we may not be in a position to confirm it until hostilities cease completely around, in and around, the Oberoi Hotel."
He confirmed the situation at the Taj Mahal Hotel was now calmer and "some Australians have come out of that hotel in dribs and drabs over the last few hours".
He said officials still did not know exactly how many Australians had been caught up in the terrorist attack.
"We can't be certain, we can't be precise," he said.
"One figure I have used is there could be as many as 25, 26 ... but frankly, any Australian we can't account for causes us deep concern and clearly there's more than one and the sooner that situation in the Oberoi Hotel settles down then the quicker we'll be able to make those judgments.
"In addition to hostilities, of course, there is the difficulty of the Oberoi Hotel is there is at least one fire there which causes great difficulty."