The terrorists had taken over of a building earlier in the after taking two security personnel hostage.
Director General ISPR Athar Abbas had said the terrorists were shifted to the building after their arrest but somehow they overpowered the security guards and took control of the building.
Police has earlier said that the terrorists tried to get into a secured area close to the consulate and intelligence unit buildings early in the morning.
"There target is not clear but they were trying to reach a very sensitive area. There is the US consulate and army offices and buildings in that area," Karim Kha, a senior police official in Peshawar had told AFP.
The army and police had blocked all the roads into the area while helicopters patrolled the skies.
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