Police on Thursday have arrested a Briton student on suspicion of involvement in the deadly attack at a cafe in Dhaka.

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According to the Deccan Cronicle, Bangladeshi origin British citizen, Hasnat Karim and Tahmid Khan, who both study at the University of Toronto were detained on Wednesday.

"We can confirm that they were arrested under Section 54 of CrPC (criminal procedure)," police spokesman AKM Shahidur Rahma is quoted as saying by the Deccan Cronicle.

20 people, mostly foreigners including an Indian girl, were killed inside a cafe popular with expats in the diplomatic zone in the Bangladesh's worst terror attack, before commandos launched an assault, killing six attackers and capturing one alive.​