The man seized three hostage in Rue des Petites Ecuries, with armed police and firefighters at the scene.
After a stand-off lasting several hours, the hostage taker was arrested and hostages releaed.
Shocking photos earlier showed police decked out in body armour with witnesses warning of “an armed man”.
The man, described by authorities as “unstable”, claimed to have been in possession of a gun and explosives.
One hostage was “seriously injured” after he hit the victim with a wrench, the hostage-taker earlier told police.
Another was slightly hurt as he fought the hostage-taker before fleeing.
A journalist for BFM Paris said two hostages had been taken at an advertising agency’s office near Gare du Nord Eurostar station.
He said: “An armed man is entrenched rue des Petits Stables, Paris 10th. He’s holding two hostages. Cordoned off by law enforcement.”
One of the hotstages is believed to be a pregnant woman.
A security source at the scene said the man wanted to speak to the Iranian embassy and French government.
One man was injured when the hostage-tacker attacked him with a wrench before taking the hostage.
Streets in the area were sealed off by police cordons.
One witness, identified only as Max, described the scene.
He told Le Parisien: “I was told it was a hostage crisis. The whole neighbourhood is closed. My car has disappeared.
“I suspect the Prefecture of having removed it because it was right in front of the place.”
Police said the incident was not believed to be terror-related.
Source : EXPRESS