A shootout with Belgian police has left two suspected Islamists dead.

Explosions were also reported as officers carried out an anti-terror raid in the eastern town of Verviers – one of several nationwide against jihadists thought to have returned from Syria’s civil war.

Authorities probing an alleged terror cell said they believed it was on the point of committing major terrorist attacks in Belgium.

“As search warrants were being carried out, the suspects immediately opened fire for some minutes with military weaponry and handguns on special federal police units before being neutralised,” Assistant Public Prosecutor Thierry Werts told reporters.

A third suspect was arrested in Verviers, between the city of Liege and the German border. No police officers or civilians were hurt.

No link has been established at this stage between events in Belgium and last week’s deadly Islamist attacks in Paris.

Belgium has seen significant radical Islamist activity among its Muslim communit