Two people were shot and killed on Sunday near a hotel on the Greek resort island of Corfu, police said, with state media and a witness adding the shooter killed himself.

-We got a report on gunshots being fired at 11:30 am (0830 GMT), near a hotel- a police officer in Athens said.

-The first information we have is that two people have been fatally wounded. It has yet to be confirmed by a coroner- the officer said.

An eyewitness told AFP by telephone that a Greek man shot the two before killing himself at the coastal resort of Dasia.

-The two victims succumbed and the shooter killed himself- he said on condition of anonymity.

-I saw the bodies in an empty lot next to a room rental- he added.

State news agency ANA said a 60-year-old local man had killed a pair of neighbours, a man and woman, over a private dispute.

One of the victims was a Greek man who lived in France, the police source said.

No injuries have been reported among the hotel residents.