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Two people are reported to have been killed after two terrorists took five people, including children, hostage in a kosher supermarket in Paris.

A shoot-out took place around the Hypercasher Vincennes in Porte de Vincennes in the east of the capital.

It comes after the hunt for the Charlie Hebdo gunmen developed into a siege.

An armed intruder, reportedly involved in the shooting of a policewoman on Thursday, is understood to be the perpetrator.

The shop would have been at its busiest at the time of the intrusion, as customers prepare for Shabbat. The area has been evacuated by armed police.

Interior Minister Bernard Cazeneuve is at the scene.

The events near Paris's Porte de Vincennes took place as two suspects in France's deadliest terror attack in decades were cornered near Charles de Gaulle airport.

Security forces streamed into the small industrial town of Dammartin-en-Goele in a massive operation to seize the men suspected of carrying out France's deadliest terror attack in decades. One of the men had been convicted of terrorism charges in 2008, and a US official said both were on the American no-fly list.

Authorities evacuated a nearby school at around midday local time after the suspects, brothers Cherif and Said Kouachi, agreed by phone to allow the children safe passage, town hall spokeswoman Audrey Taupenas told the Associated Press.

"They said they want to die as martyrs," Yves Albarello, a local politician who said he was inside the command post, told French television station i-Tele.

At least three helicopters hovered above the town. Nearby Charles de Gaulle airport closed two runways to arrivals to avoid interfering in the standoff, an airport spokesman said.

The town appealed to residents to stay inside their houses.

The men are suspected in the attack against the satirical newspaper Charlie Hebdo in Paris that left 12 people dead.