A gunfire exchange and car chase have been reported near Paris' Roissy airport, northeast of the French capital, in the hunt for two brothers suspected of carrying out the deadly attack on satirical magazine Charlie Hebdo.
Two men corresponding to the description of the fugitive gunmen Cherif and Said Kouachi stole a car in Montagny Sainte-Félicité in the Oise region this morning, security sources said.
Shooting was later heard in the nearby town of Dammartin-en-Goële. Le Parisien newspaper initially reported that two people were killed and 20 injured in the shoot-out, although reports vary, with French authorities denying any fatalities.
Following the shoot-out a car chase ensued, with the two suspects reportedly finding shelter in an industrial building in Dammartin-en-Goële.
Local residents told RTL the gunmen are now holed up inside the warehouse of a company producing meal trays. Others suggested it is a printing house instead.
The gunmen are believed to be holding one person hostage.
Security forces including several police helicopters have been deployed in the area, located some 40 km (25 miles) northeast of Paris.
Troops with France's armed forces special operation unit - the GIGN - are also at the scene, with reports they have opened negotiations with the suspects.
Photos showing a police helicopter hovering over the town have been posted online.
Interior minister Bernard Cazeneuve confirmed a large police operation connected with the Charlie Hebdo shooting is ongoing.
Police have cordoned off the area and urged residents to remain indoors.
Read IBTimes UK's live coverage of the manhunt here: Charlie Hebdo Paris massacre LIVE.