According to the BBC, armed police have shot a suspect of whom allegedly held hostages at a shop in Trèbes, the southern France town.
Reported to have killed a minimum of two victims, the gunman is now dead, sources suggest.
Reports have said that the gunman, identified as Moroccon, claimed allegiance to Islamic State group.
The same suspect had allegedly shot and injured a policeman while he was running with some co-workers in Carcassonne, 15 minutes away.
It has been reported that the suspect was very well armed and asked for the release of Selah Abdeslam, one of the most significant surviving suspects from the Paris November attacks.
The BBC also state that reports say that the suspect was well known to French Intelligence services and that his parent, his mother is at the site.