Police said the incident was not believed to be terror-related.
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At least two people are reportedly being held hostage in a building in central Paris, prompting a large police response to the area. The information could not be officially confirmed.
Videos and images circulating on social media show several police vehicles as well as heavily armed officers at the scene.
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Witnesses said the man claimed to be in possession of a gun and bomb.
Police initially said the hostage scene was unfolding in an office in the building, but soon stopped communicating details to journalists. But the police source said he had asked to communicate with the Iranian embassy so that they could convey a message to the French government.
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Negotiations with the suspect were taking place, according to an Interior Ministry official who couldn't be identified because the operation was in progress.