The gunman suspected of killing three Jewish children and a rabbi outside a school in Toulouse is holed up in a house just a few kilometres away..
He's also suspected of killing three French soldiers last week.
French police have sealed off the area and negotiators are in contact with him.
The French interior minister says gunman is a 24-year-old who has made several visits to Afghanistan and Pakistan and claims links to al Qaeda.
SOUNDBITE: CLAUDE GUEANT, FRENCH INTERIOR MINISTER, SAYING (French):
"He claims to be a mujahideen belonging to al Qaeda and he wanted revenge for the Palestinian children and he also wanted to take revenge on the French army because of its foreign interventions. We were able to make contact with him to tell him to surrender himself. In the meantime some exchange of fire has taken place. The brother of the suspect has also been taken in for questioning."
French officials say the gunman has told negotiators he would give himself up during the course of Wednesday.
They said he had also thrown a pistol from the house but still had a machine gun, assault rifle and other weapons.
Paul Chapman, Reuters
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