Two people were confirmed dead in an anti-terror operation in the eastern Belgian town of Verviers Thursday, officials said.

A third person was arrested in Verviers and no police or members of the public were harmed, Prosecutor Eric Van der Sypt said.

Police followed a group of suspects for two weeks that returned recently from Syria, Van der Sypt told reporters.

"The suspects immediately and for several minutes opened fire with military weaponry and handguns on the special units of the federal police before they were neutralized," the prosecutor said.

The prosecutor also said that the terror threat level in Belgium had been raised to three.

Meanwhile, local Belgian media reported that some explosives were also found.

AA