The Paris terror suspects have been tracked down to an industrial building near Charles de Gaulle airport where terror experts have opened negotiations with the duo.
Dammartin-en-Goele, 25 miles north-east of the capital, was sealed off as a siege situation developed amid reports that brothers Said and Cherif Kouachi may have taken hostages.
Officials denied reports of fatalities after shots were fired during the operation.
The brothers were cornered in the premises of a construction firm after stealing a car earlier.
Officers from the GIGN special forces unit were said to have begun negotiations with the Islamic fanatics, who murdered 12 people at the offices of the satirical magazine Charlie Hebdo on Wednesday.
The Kouachis took the Peugeot earlier today in the town of Montagny Sainte Felicite, about 30 miles north-east of Paris.
There was heavy gunfire reported on the major road linking the two towns followed by a car chase.
A large police convoy, including helicopters, rushed to scene as the French interior ministry confirmed that an operation to detain the suspects was under way.
Police open negotiations with Paris gunmen suspects