Police in Tolouse during the 2012
Police in Toulouse during the 2012 manhunt for extremist Mohammed Merah Getty Images

Police in Toulouse in south-west France have arrested a man on suspected of planning to commit a terror attack on New Year's Eve.

Two other people, one of whom is suspected of planning an attack on police officers, were arrested in Toulouse in a separate raid, a police source told Reuters.

Police told local media the suspects had been under police surveillance for several months.

It comes after a series of terror attacks by extremists connected with the Islamic State terror group in France, Germany and Belgium over the last year.

In 2012, Islamic extremist Mohammed Merah killed seven people in attacks targetting Jewish civilians and Muslim members of the French armed forces in Toulouse.

France remains in a state of emergency after the November 2015 Paris attack, and attacks in Nice in France and in a church in Normandy early in the summer.

An attack on a Christmas market in German capital Berlin on 19 December left 12 people dead, and resulted in a Europe-wide manhunt which ended with suspect Anis Amri being shot dead by police in Milan, Italy.