Three men in Australia, accused of having links to the Islamic State, were arrested by police for allegedly plotting to carry out terrorist attacks on several targets in Sydney.

Ian McCartney, the Australian Federal Police Assistant Commissioner, said the three men have been arrested following counter-terrorism raids in six properties of Sydney's west.

He said they would be charged with a range of serious offences, from being a member of a terrorist organization, acts in preparation of a terrorist attack in Australia and preparations to enter a foreign country with the intent of hostile activities.

Police believe the plans for local terror attacks were in early-stage preparations.

Likely targets include police stations, defence establishments, embassies and councils, courts and churches.