This is the terrifying moment a merciless arsonist sets fire to a cafe while people sleep unsuspectingly in apartments above.

The shocking CCTV video footage shows the fire starter pouring what seems to be dousing the room with what seems to be petrol from a bottle.

Then the hood-wearing thugs ignites the fluid and flames quickly engulf the room in Bad Endorf, Bavaria State, Germany.

Footage from outdoor security cameras, released by police on 9th October, show the arsonist fleeing through a car park with an accomplice.

Now police have put up a EUR 5,000 (GBP 4,319) reward for information leading to the conviction of the pair for attempted murder and arson.

Astonishingly all the apartments above were evacuated in time and noone was injured in the fire on 3rd April.

But police say the fire casued more than EUR 300,000 (GBP 259,134) of damage to the building.

A police spokesperson said: “Fortunately, all residents of the apartments on the upper floors were able to leave the building independently and reach safety.

“In the course of previous investigations at the scene of the fire, it was determined that a window was smashed in both the cafe and the adjacent shop.

“Witnesses observed two people who gained access to the building through the broken windows shortly before the fire broke out and fled on foot a short time later.”

Investigations continue, they added.