They said that so far six militants have died — four of them blew themselves up while two were shot dead by security forces.
20 teachers, including the principal, and 34 students are hostages and the operation is continuing, an official of Khyber-Pakhtunkhwa chief minister Pervez Khattak's office said.
The Tehreek-e-Taliban Pakistan has claimed responsibility for the attack, one of the worst in recent years.
The Taliban spokesman claimed that its 6 suicide bombers attacked army school, saying it was a revenge for the army's operation against militants in the North Waziristan tribal area close to Peshawar.
"We want them to feel our pain," the spokesman said. World leaders united in condemning the attack as Prime Minister Nawaz Sharif termed it a "national tragedy" and chaired a security meeting in Peshawar where he was briefed about the attack and operation.