Residents of Dammartin-en-Goele have been warned to stay indoors and pupils are being kept inside schools while anti-terror experts negotiate with the Paris attack suspects.
Dammartin-en-Goele, 25 miles from the capital, was locked down as a siege situation developed with brothers Said and Cherif Kouachi and the town website is now advising people to stay inside, stay away from their windows and switch off their lights.
Meanwhile pupils are being kept inside schools across the area to keep them safe.
Officials denied reports of fatalities after shots were fired during the operation this morning but police confirmed that a hostage had been taken.
The brothers were cornered in the premises of a printing firm after stealing a car earlier.
Officers from the GIGN special forces unit were said to have begun negotiations with the Islamic fanatics, who murdered 12 people at the offices of the satirical magazine Charlie Hebdo on Wednesday.
The Kouachis took the Peugeot earlier today in the town of Montagny Sainte Felicite, about 30 miles north-east of Paris.
There was heavy gunfire reported on the major road linking the two towns followed by a car chase.
A large police convoy, including helicopters, rushed to scene as the French interior ministry confirmed that an operation to detain the suspects was under way.
