Scotland Yard has warned businesses in London to expect a Mumbai-style attack on the capital, according to a report in Sunday Times.

In a briefing in the City of London 12 days ago, a senior policeman from Scotland Yard said, "Mumbai is coming to London."

He warned companies of a shooting and hostage raid involving a small number of gunmen with handguns and improvised explosive devices.

The Scotland Yard's assessment is that a terrorist cell may be preparing an attack on London early next year.