A man armed with "several knives" killed his mother and sister and seriously injured another woman in a town near Paris on Thursday, officials said.

The man, who police said had been on a terror watch list since 2016, was later shot and killed after confronting police in Trappes.

He also stabbed a third victim, a female passerby, who was gravely injured in the attack. France's interior minister Gerard Collomb told reporters the attacker had "serious psychiatric problems", and said the attack was not being treated as terrorism.

Despite providing no evidence, the Islamic State group claimed the attack via its propaganda channel.

The attacker, 36, reportedly shouted "Allahu Akbar" during the rampage, and was shot dead by police after the assault in a residential street.

Local media, citing police sources, said he was discovered to have been carrying several knives and a long-time friend of the attacker named him as Kamel Salhi, which was confirmed by a government official.

The friend, Said Segreg, said Salhi had no obvious problems, didn't abuse drugs or alcohol and wasn't fervently religious.

Salhi was divorced and living with his mother, said Adama Traore, another of his acquaintances in Trappes.