Paris terrorist attack: ISIS knifeman 'shouting Allahu Akbar' kills ones, leaves four injured

French police officers guard the site after a knife attack in central Paris. Photo / AP

A terrorist shouted "Allah Akbar" as he "slashed at the throats of innocent bystanders" in Paris last night - killing one and injuring four others.

Armed police swooped on the French capital near the historic Opera Garnier opera house shortly after 9pm and used a taser on the attacker before shooting him dead when he refused to surrender.

ISIS later claimed the killer was one of their "soldiers" as President Emmanuel Macron said "France has once again paid the price of blood", the Daily Mail reports.

Dramatic footage shows scenes of panic as people sprinted away from the scene of the rampage where someone could be seen covered in blood on the ground.

The bloodbath follows a series of ISIS and Al Qaeda attacks in France which has seen almost 250 killed by terrorists since early 2015.

Following tonight's attack, an investigating source said: "A 29-year-old man died after being stabbed by an assailant close to the Opera House.

"The attacker targeted an area full of restaurants and bars close. He shouted 'Kill me before I kill you' and also used the words Alluhu Akbar.

"He was slashing throats indiscriminately using a knife before police arrived on the scene. They were able to shoot him dead."

The Islamic State group claimed responsibility, according to the SITE monitoring group.

"The executor of the stabbing operation in the city of Paris is a soldier of the Islamic State and the operation was carried out in response to the calls to target the coalition states," a "security source" told IS's official Amaq news agency, according to SITE.

The initial attack took place on Rue Monsigny, in the 2nd arrondissement, where crowds were seen running away in panic.

At one stage, many were trapped inside a Japanese restaurant, with many fearing the knifeman was inside with them.

A police officer cordons off the area after a knife attack in central Paris. Photo / AP

"Just before 9pm, we saw people rushing inside the restaurant screaming that a man was inside with a bloody knife," a witness called Laurent told Le Parisien newspaper.

"People were throwing themselves on the floor in panic. Five minutes later, there was a second crowd movement.

"Customers blocked the door of the restaurant, as they were afraid that attacker had slipped inside. Then, it calmed down. Outside, even the police seemed a bit lost at first."

Shocked tourists and residents looked on from behind the security perimeter.

Anti-terrorist judges from Paris have launched an investigation, with the city prosecutor Francois Molins confirming that the suspected "Allah Akbar" — words commonly used by ISIS fanatics.

President Emmanuel Macron praised "the courage" of the police who "neutralised the terrorist".

In a tweet, Mr Macron said: "France pays once again the price of blood but does not yield an inch to the enemies of freedom".

Interior Minister Gerard Collomb hailed in a tweet the "sang-froid and reaction of the police who neutralised the attacker".

The injured have been taken to the Georges Pompidou hospital, where two are said to be in a very serious condition.

A witness called Gloria, 47, told the AFP news agency: "I was on a cafe terrace and heard four shots. I then came out to see what was happening, then I saw a man on the ground."

It follows an ISIS attack in southwest France on March 23, which saw the number of terrorist victims killed on French soil since January 2015 rise to 245.