Marcia Mikhael of Sydney, who is in her 40s, was shot in the lower leg during the incident, which left three people dead, including hostage-taker Man Haron Monis.
She was taken to hospital in stable condition and underwent surgery on her leg on Monday, relatives said, but she expects to be released soon.
Mikhael Mikhael, Mikhael’s brother-in-law who lives in Ottawa, says he watched the hostage-taking on television overnight.
It was around 4 a.m. ET in Ottawa, he said, when he saw his sister-in-law carried out of the café.
"I saw her personally … they're carrying her and then from her face I knew that was Marcia," he said.
"When I saw her alive in the hands of the soldiers, the first thing I clapped my hands … and I was tearing and crying, and I was alone early in the morning."
The two hostages killed during the 16-hour siege at the Lindt Chocolat Café have been identified as Katrina Dawson, 38, a lawyer and mother of three, and Tori Johnson, 34, the manager of the establishment.
The Iranian-born gunman held them and 15 others hostage before police stormed into the café in the heart of Sydney's financial district early Tuesday.