Two persons were feared dead in the hostage-taking incident in a supermarket in the south-western France town of Trebes, a security source said on Friday.
The hostage-taker, who has claimed allegiance to the Islamic State, had earlier shot at a police officer.
French prosecutors say they are treating the hostage-taking as terror incident.
Here's a look back at some of the deadly attacks on French targets.
(Click on the dates to read more about the deadly attacks of the past)
Timeline: A year of deadly terror strikes in France
Terror ploughs into France once again; 10 kids among 84 killed
France biggest target of Islamic State in Europe, say experts
Why you should know what's going on in France
Bloodbath in Paris: 129 dead as terrorists plan Mumbai-style attacks