France has become a major target of frequent terrorist attacks in recent years.
A wave of attacks, claimed by the IS, had broken the calm several times; the bloodiest was in Paris when a series of explosives and shootings left 130 victims dead in November 2015.
In October 2017, French President Emmanuel Macron signed anti-terrorism law which he said was necessary to muscle security at home to combat high terrorism menace.
The bill enshrines emergency security rules into ordinary law, that allows police to have more power to search, arrest without judge approval and restrict people movements and gathering.
The media wing of IS claimed responsibility for the attack in a statement published online.
The Amaq News Agency said "the person who executed the stabbing in Paris is a soldier of the Islamic State."
The statement also said the assailant acted in response to calls to attack anti-IS coalition countries.
IS did not provide proof to substantiate the claim and no authorities or security sources have yet verified the authenticity of the claim, CNN reported.
Macron tweeted saluting the courage of the police who "neutralied the terrorist" in the Paris knife attack.
French Interior Minister Gerard Collomb denounced the "heinous act" and praised police "composure" and swift action.
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