A British national and a student at a Canadian university were arrested on Wednesday night in connection with last month's terror attack at a cafe in Dhaka. Police spokesperson AKM Shahidur Rahman told AFP that the Briton, Hasnat Karim, was of Bangladeshi origin while Tahmid Khan was a student at the University of Toronto.

Both Karim and Khan were reportedly inside the cafe when gunmen stormed the popular restaurant in Dhaka's diplomatic area on July 1 and killed 20 people. But neither of them were found after commandos entered the cafe and brought the siege to an end.

Karim, 47, had been working as a director at his father's engineering company in Dhaka. Karim was earlier a lecturer at North-South University in Dhaka, which also happened to be where two of the attackers had studied. Khan, 22, was on leave from his varsity and on holiday in his hometown.

Police had earlier named Canadian citizen Tamim Chowdhury the mastermind behind the attack and offered a reward of up to $25,000 (Rs 16.8 lakh) for any information regarding his whereabouts.