At least one police officer was killed, two wounded and the attacker neutralised in the shooting, according to CNN affiliate BFMTV and the French Interior Ministry.
A machine gun, two hand guns and three kilos of TATP explosive were among the weapons found at a flat in the southern city along with Islamic State propaganda materials, according to Molins. Some said three police officers shot.
French President François Hollande said before ISIS took responsibility that the circumstances of the shooting indicate a terrorist attack.
France remains under a state of emergency, after a series of deadly terrorist attacks over the past several years.
Hollande, who said he was convinced the shooting was a "terrorist act", cancelled a trip to Bretagne and will chair a security cabinet meeting Friday.
ISIS issued a statement saying an Islamic State "fighter" carried out the attack. He said officers are searching the man's residence in Chelles, Seine-et-Marne, a Paris suburb, and are trying to determine if he had accomplices.
SHAPIRO: NPR's Eleanor Beardsley on the Champs-Elysees in Paris, thank you very much.
ISIS have claimed responsibility for the attack, in which the officer was said to have been killed while in a vehicle stopped at a red light.
"They were running, running", said 55-year-old Badi Ftaïti, who lives in the area.
He was arrested in February on suspicion of plotting to kill officers but was released because of lack of evidence. Also wounded was a female tourist. The avenue was clear of residents and tourists but teeming with security officers Thursday night.
"We're three days before a presidential election", Eleanor says. Candidates went ahead with a debate Thursday night.
"First of all, our condolences from our country to the people of France".
Security has been tight because of the vote. The assailant reportedly targeted a police vehicle.
Trump: 'What can you say?'
It was immediately blocked by armed officers after the attack and nearby metro stations were closed. "I was in a panic, and I ran too", he said.
The CNN Paris bureau is on this street and staffers reported hearing a dozen shots. A police source also said there had been two assailants, and a witness told Reuters that one man got out of a auto at the scene and began shooting with a machine gun. Officers are now evacuating people from the area.
"It looks like another terror attack", Trump said during a joint news conference with Italy's prime minister at the White House. What can you say? "It never ends", the President said.
The Champs-Elysees is a main road lined with restaurants, cafes, exclusive designer boutiques and tourist shops.
Police authorities called on the public to avoid the area. Downing Street released a statement saying the United Kingdom. #ChampsElysees has been closed.
France is in a state of emergency and at its highest possible level of alert since a string of terror attacks that began in 2015, which have killed more than 230 people.
French far-right presidential candidate Marine Le Pen tweeted, "My emotions and solidarity for the police, once again targeted".
French conservative politician Francois Fillon, a candidate in France's presidential election, says campaigning should be suspended following the shooting in Paris.
"The sense of duty of our policemen tonight averted a massacre. they prevented a bloodbath on the Champs Elysees", Interior Minister Matthias Fekl told reporters.
The far-left's Jean-Luc Mélenchon also took to the social media platform, writing: " Thought [s with] the dead and wounded policemen and their families. "Solidarity with his injured colleagues and those close to them", he tweeted. "Complete support to law enforcement against terrorism", he said on Twitter.
A shooting on Paris' Champs-Elysees Thursday night left one police officer dead, along with the suspected shooter. One attacker fired the shots with a machine gun and was subsequently killed by law enforcement. "Some were crying.
Smith, for one, seems certain the case is headed for yet another appeal, ending his dissent with the words "Stay tuned". Texas also has sought to eliminate straight-ticket voting, one of just 10 states still allowing the practice.
Former French Open champion Stan Wawrinka was also routed, with the Swiss third seed losing to Pablo Cuevas of Uruguay 6-4, 6-4. After a long game Berdych broke back for 5-5 and then forced a tiebreaker, but the Czech player wilted against the 2014 U.S.
French far-right presidential candidate Marine Le Pen tweeted, "My emotions and solidarity for the police, once again targeted". Police and soldiers sealed off the area, ordering tourists back into hotels and blocking people from approaching the scene.
Pearl Jam , the Electric Light Orchestra, Journey , Yes, and the late Tupac Shakur were also among the inductees. His wife, Jill, was teary-eyed in the audience at the Barclays Center in Brooklyn as fans continued to cheer.
He said: "The evidence is clear: Iran's provocative actions threaten the United States, the region, and the world". The secretary of state earlier acknowledged the Iranians had met the terms of the 2015 nuclear deal.
Earlier Thursday, Hernandez's lawyer complained that state officials had turned over the 27-year-old's body but not his brain. Hernandez was taken into police custody on June 26, 2013 , on charges related to the death of his friend, Odin Lloyd .
EU calls for probe in Venezuela protest deaths
San Cristobal Mayor Patricia Gutierrez has said that Ramirez was shot to death by people who appeared to be government supporters. He said Venezuela's Works Ministry has guaranteed that the workers will keep their jobs, but added: "We don't feel happy".
Turkey's election board rejects appeals to annul referendum
The protesters on Wednesday evening chanted "Thief, Murderer, Erdogan" and "Don't be silent, shout out, "no" to the presidency". The board's decision to accept ballots without official stamps was like "changing the rules midgame", he said.
Arkansas execution drugs intended for surgery, heart issues
The legal issue that halted Monday's executions for Ward and Davis hinged on a separate, broader case pending before the U.S. The ruling clears one of the main legal hurdles the state faces in its effort to carry out two executions Thursday night.
One police officer killed, another wounded in Paris shooting
He had been convicted in 2005 of three counts of attempted murder, with two of these against police officers, sources said. The vote is on Sunday, and today is the last day of campaigning, and everyone has called it off to, you know, hold.
Murray loses to Ramos-Vinolas at Monte Carlo Masters
Former French Open champion Stan Wawrinka was also routed, with the Swiss third seed losing to Pablo Cuevas of Uruguay 6-4, 6-4. Rafael Nadal completely outclassed birthday boy Alexander Zverev 6-1 6-1 to storm into the Monte-Carlo Masters quarter-finals.
North Korea warns US against provocative action
Tensions are high after the United States military recently ordered a navy strike group to move towards the Korean peninsula. South Korean military officials said they believe the object was a new type of ICBM.
Sports Direct buys two US chains in £78m debt deal
Nicholas Hyett, equity analyst, Hargreaves Lansdown said Sports Direct had picked up a "bargain out of bankruptcy proceedings". The deal gives Sports Direct about 50 stores selling sports and casual wear and camping equipment.
Reading the Kansas 4 and Georgia 6 Tea Leaves
While Ossoff got support from his party's chairman, Handel gathered her own big name support, picking up an endorsement from Gov. Winning such a seat will depend on Ossoff keeping voters like Shari Sprigle engaged in the race.