(Updated at 18:25)
A local mayor confirmed that the attacker had killed one person in the southern suburb. A witness said he saw him stab one man and that he appeared to select victims at random.
The assailant then fled to the neighbouring suburb of L'Hay-les-Roses, where he was shot dead.
A police union official told French media that officers fired repeatedly on the suspect because they feared he was wearing an explosive vest that he might have detonated.
“We heard a first shot, someone shout ‘Drop your weapon!'" said a witness. “There were several shots fired.”
The attacker's motive has not been made clear.
At least two other people were wounded, one of them seriously, a source added.
France has been hard hit by a string of attacks, many by jihadist extremists, since 2015, with more than 250 killed in total.
The public prosecutor has begun an investigation into the attack. The special terrorism investigative unit was on hand, according to local French television BFM, but is not participating in the investigation.
Most recently, a police staff member who had converted to a radical version of Islam stabbed four colleagues to death at the Paris police headquarters in October.
(agencies)
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