An armed man was shot by police in a supermarket in Lille, France on Thursday after he took a woman hostage.

The dramatic incident played out at around 8pm local time in a Monoprix supermarket with the country still on alert after recent terror attacks.

A shopper who was inside the supermarket at the time told local media that an unmasked man had entered the shop holding a pistol in the air.

The man, aged 19, is reported to have been attempting to rob the supermarket.

Fifteen or so customers inside Monoprix grouped together and headed to a second floor of the supermarket where someone alerted the police.

The gunman then took a hostage, who was reported to be a woman.

With the building surrounded by police, the attacker turned his attention from the hostage and aimed his weapon towards the police, who opened fire.

A witness out on the street said they heard at least six shots.

The hostage-taker sustained serious injuries but was expected to survive the shooting, according to local media