Uprisings at prisons throughout the Brazilian state of Sao Paulo are now under control with all hostages set free.
A total of twelve people are now estimated to have died in the rioting.
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Rioters in Sao Paulo state prison
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Guards, backed by hundreds of heavily armed troops, invaded Latin America's biggest prison, Carandiru, and started a cell-by-cell search in what appeared to be a negotiated end to the 25-hour siege, observers said. Authorities had already taken over many of the other rioting prisons.
The guards and shock troops just entered the pavilions, Ms Sandra Carvalho of the Justica Global human rights group said in a telephone interview. She and other observers will remain in Carandiru to supervise the transfer of power and prevent clashes between police and inmates.
The rebellions broke out at midday yesterday when some 20,000 rioting inmates took relatives, friends and prison guards hostage during visiting hours at 27 prisons in Brazil's wealthiest and most populous state of Sao Paulo. Authorities regained control of 16 of the prisons overnight.
The uprising was organized by a powerful prison gang called the First Commando of the Capital (PCC), which was protesting the transfer of its leaders from Carandiru to other prisons in Sao Paulo.
Carandiru was the site in October 1992 of Brazil's bloodiest prison massacre, when police stormed the jail after a fight between prisoners, killing 111 inmates and injuring 100 others.