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)
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
14 killed in twin attacks in Barcelona; Islamic State claims responsibility