An attacker killed his mother and sister before being shot dead by the Police.
Another woman, a passerby, was also injured in the attack.
The incident unfolded in Paris suburb of Trappes on Thursday morning, a police source said.
ISIS the extremist group claimed responsibility of the attack without providing any proof.
Meanwhile, a French interior ministry source said that the two killed in in the knife attack were mother and sister of assailant.
Earlier Reuters quoted a source as saying that: “The reason behind the attack and his profile are not known yet and are being looked into.”
Trappes is an underprivileged town situated in an overall wealthy area west of Paris, with a population of around 30,000 and is part of the far suburbs of the greater Paris area.
The area has a large Muslim population and more than 50 locals were suspected of leaving France to fight for ISIS.