A journalist for BFM Paris said two hostages had been taken.
French police with their dog secure the street as a man has taken people hostage at a business in Paris, France, June 12, 2018.
"The individual has been arrested and the hostages are out of danger", Interior Minister Gerard Collomb said on Twitter.
Crowds of bystanders were held back by a security perimeter at the site, where police and rescue workers were massed, deploying at least one remote-controlled robot on tracks toward the building where the armed man had barricaded himself.
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Man holds two people hostage in Paris
The attacker, who appeared to be brandishing a fake weapon, had doused his remaining two hostages in petrol, the source said. An armed man in Paris claiming to have explosives, has reportedly taken at least 3 people hostage.
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"The man claims to be in possession of a bomb and a handgun", France Bleu said, adding that the hostage-taker demanded to speak with Iranian embassy.
A police source said the hostage-taker initially hit one person who was able to escape. The incident is not believed to be terror-related. One of the hostages is reportedly a pregnant woman, and another is "severely injured", according to a witness.
Entering the building located on Rue des Petites Écuries around 4 p.m., the man pretended to be delivering food.
This is a breaking story, more to follow.