France: The incident happened on Tuesday when an armed men entered into the church in Saint-Etienne-du-Rouvray during Mass, taking the priest, two nuns and several churchgoers hostage, reports said.
French TV said, “Shots had been heard after police arrived at the scene. Both hostage-takers are now dead.”
When the attack took place, the area was cordoned off.
The reports revealed that many atleast one person is receiving medical treatment for injuries.
A woman who works in a local beauty parlour, Eulalie Garcia, said she had known the 92-year-old priest since her childhood.
"My family has lived here for 35 years and we have always known him," she said.
"He was someone who was treasured by the community. He was very discreet and didn't like to draw attention to himself," she added.
The accused has not been identified yet. But, France has been on high alert since the Bastille Day attack in Nice which killed more than 80 people.
Earlier, the Nice attack was carried out by Tunisian Mohamed Lahouaiej-Bouhlel.
President Francois Hollande and Interior Minister Bernard Cazeneuve are on their way to Saint-Etienne-du-Rouvray to be briefed by police.
“The investigation into the incident will be led by anti-terrorism prosecutors”, the interior ministry has said.