Update - 10.45am: An attacker has killed two people before being killed by police in a town west of Paris, a senior French official said.
Jean-Jacques Brot, the top government administrator in the Yvelines region, tweeted that the attacker in the town of Trappes was "neutralised" and had died.
[# Trappes] Opération de police achevée
Le RAID n'a pas été engagé. Individu neutralisé et décédé.
Bilan humain s'agissant des victimes : 2 personnes décédées, 1 blessé grave. @Prefet78 remercie les fonctionnaires de @PoliceNat78 pour leur sang-froid et leur professionnalisme— Préfet des Yvelines (@Prefet78) August 23, 2018
The tweet also said that two of the attacker's victims were killed and another seriously injured.
Earlier, media reports said the attacker had used a knife on his victims before being shot by police.
Islamic State claimed responsibility for the knife attack through its Aamaq news agency in a post shared on social media channels.
The agency said the attack was motivated by calls from the IS leadership to attack civilians in countries at war with the extremist group.
Hours earlier, IS leader Abu Bakr al-Baghdadi urged followers to attack enemies everywhere by all means, including in knife attacks.
Earlier:
A man armed with a knife has attacked passers-by, killing one and seriously injuring two others, before being shot by police west of Paris, reports said.
Police have tweeted that an operation is underway in Trappes, with a security perimeter in place.
BFM-TV reported that the man first sheltered in a house after attacking people before being shot by officers.
BFM-TV reports deadly knife attack west of Paris https://t.co/mEioQMKoAQ pic.twitter.com/6FCHASLflY
— NEWS102.3 KRMG 🎙 (@KRMGtulsa) August 23, 2018