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A gunman claiming allegiance to ISIS took hostages in a supermarket, killing at least three people before being shot dead by police.

The attacker, named by French officials as Redouane Lakdim, told police hostage negotiators he wanted a terrorist involved in the Paris attacks to be released from jail.

The gunman, believed to have been carrying grenades and a handgun, was heard shouting "Allahu Akbar" and "vengeance for Syria" during his rampage in the neighbouring towns of Trebes and Carcassonne.

He claimed allegiance to ISIS during the terror attack, say prosecutors, with reports saying he was flagged as a potential extremist and known to the authorities.

(Image: REUTERS) (Image: REUTERS)

His mother, who lives in Carcassonne, was taken to the supermarket by police in an effort to persuade him to surrender.

Police stormed the supermarket in in the town of Trebes at roughly 1.45pm and shot him. A policeman has reportedly suffered a gunshot wound.

The drama began at around 11am when a police officer was wounded in a drive-by shooting while he was out for a jog with colleagues in Carcassonne.

A short time later, about 20 hostages were taken at a branch of Super U in Trebes - a 15-minute drive away - where a butcher and a shopper were killed.

A third victim was later found dead in a ditch in Carcassonne near the police barracks with a gunshot wound to the head. Another victim was also seriously injured.

(Image: AFP)

At 1.45pm there were reports police had stormed the supermarket and shot the attacker.

A source said the gunman's mother and sister were brought to the scene to try to convince him to surrender.

The gunman was known to the French intelligence service and his name was on an anti-radicalisation list which was created after the Charlie Hebdo attack in Paris in January 2015 to identify and monitor people who may carry out a terror attack.

Negotiators were in contact with the man, who demanded the release of Salah Abdeslam, the only surviving terrorist involved in the November 2015 attacks in Paris that killed 130 people, sources told French media.

Abdeslam, who has refused to answer questions in court, is a Belgium-born French national of Moroccan descent. He was captured by anti-terror police in Brussels in March 2016 following a massive manhunt.

(Image: Maxppp/PA Images) (Image: Maxppp/PA Images) (Image: AFP)

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The 28-year-old was charged with participation in terrorist murder and participation in the activities of a terrorist organization, and attempted murder over a shootout with police which occurred days earlier as he eluded capture during a raid.

He is currently in solitary confinement in a high-security prison near Paris, while awaiting trial.

Abdeslam has admitted helping coordinate the 2015 attacks, but failed to let off his suicide bomb vest out the Stade de France, France’s national sports stadium, during a football match between France and Germany.

A source close to the investigation in Trebes said: "The hostage taker is in touch with police negotiators and has called for the release of Abdeslam."

(Image: AFP) (Image: Sky News) (Image: AFP)

Trebes Mayor Eric Menassi said there are at least "two victims" - a worker and a customer - inside the supermarket.

Terrified shoppers fled the supermarket as the gunman - who shouted "Allah Akbar" and "You are bombing Syria, you will die" during the attacks - stormed the building, local media reported.

A worker told reporters that he heard gunshots and staff rushed as many people out as they could before the gunman took hostages.

Around 20 people being held captive in the supermarket were released shortly after 12.15pm, but a police officer remained inside with the gunman.

(Image: Maxppp/PA Images) (Image: AFP)

A source in Trebes said: "A butcher in the U-Supermarket has been shot dead.

"The gunman was heard shouting slogans about the war in Syria. He says he is representing Islamic State."

"Allahu Akbar" and "Vengeance for Syria" were heard by riot police officers who were attacked by the suspect while out jogging in civilian running gear, it was reported.

(Image: AFP)

The officers were all members of the CRS 57 (Republic Security Companies) unit, based at Carcassonne. All were off duty when they were attacked, around two miles from the supermarket.

Local media were reporting that the officers were shot at by a gunman in a car and then tried to pursue the attacker, but he drove off.

Five shots were fired and one of the officers was hit in the shoulder.

He was rushed to the nearest hospital.

(Image: AFP)

After the shooting, the suspect fled to Trebes, where he took hostages in the supermarket and held police at bay for hours.

Carcassonne and Trebes, about 85 miles south-west of Montpelier, are in an area hugely popular with British second home owners, expats, and holidaymakers.

If a link to ISIS is confirmed, Friday morning's attack would be the first major terror incident on French soil since the election of centrist President Emmanuel Macron in May last year.

France has been on high alert following a string of jihadist attacks since 2015.

(Image: Google)

In January of that year, an attack on the offices of satirical magazine Charlie Hebdo left 12 people dead.

Later in 2015, in November, ISIS terrorists killed 130 people when they attacked multiple locations in Paris, including bars, restaurants, the Bataclan concert venue and the national stadium.

In July 2016, in another attack claimed by ISIS, a man drove a truck through revellers celebrating Bastille Day in the southern coastal city of Nice, killing 84 people.

A state of emergency put in place just after the Paris attacks in 2015 was finally lifted in October last year, but soldiers continue to patrol major tourist sites and transport hubs under an anti-terror mission.