According to reports from the scene, two gunmen and a hostage are barricaded inside a printing company office in Dammartin-en-Goele's industrial zone.
Police have confirmed that the suspects are brothers Said and Cherif Kouachi, French nationals of Algerian origin, one of whom has served a prison term for extremist activities.
The two are suspected of carrying out the attack on the offices of the Charlie Hebdo satirical weekly in Paris on Wednesday, which claimed the lives of 12 people and injured another 11.
Prior to the attack, the magazine had repeatedly received threats from Islamic extremists for publishing cartoons lampooning prominent figures, among them the Prophet Muhammad. The former Paris offices of the magazine were firebombed in 2011.