The incident took place in a public street in the Paris suburb of Trappes on Thursday morning.
After attacking his victims in the street, the assailant hid in a nearby house, which was surrounded by security forces.
The knife-wielding attacker was “neutralized and killed” by police, a police source confirmed.
The source said “the reason behind the attack and his profile are not known yet and are being looked into.”
But Daesh has claimed responsibility for the attack in an online statement.
Back in May, a Chechen-born man with French nationality went on a stabbing rampage in central Paris, killing one person before police shot him dead.
Daesh claimed responsibility for that attack, too.
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The Thursday attack once again highlighted the difficulties that French security forces face in keeping track of suspected extremists.
French security forces have been on constant watch for possible terrorist attacks in the past years.
More than 245 people have been killed on French soil over the past three years in attacks launched by extremist individuals inspired and in some cases trained by militant groups such as the Takfiri Daesh terrorist group.