Paris police said there were five total stabbing victims: one killed, two seriously injured, and two lightly injured.
"All my ideas go to the victims and the wounded of the knife assault perpetrated tonight in Paris, in addition to to their kinfolk".
According to SITE, the designation of a "soldier of the Islamic State" generally refers to an ISIS-inspired attack, as opposed to one directly coordinated by the terror group.
The attack comes as France is under a constant threat from terrorism.
Paris police officers evacuated people from some buildings in the Right Bank neighbourhood after the attack.
Police first tried to stop the attacker with a stun-gun before shooting him dead, according to the BBC.
The police said that the anti-terrorist Prosecutor's office launched an investigation.
He is alleged to have shouted "Allahu akbar" during the attack, which translates to "God is great" in Arabic, the New York Times reports.More news: Sen. Joe Donnelly to back Trump's Central Intelligence Agency pick
The Islamic State group's Aamaq news agency said in a statement on early Sunday that the assailant carried out the attack in response to the group's calls for supporters to target members of the United States-led military coalition squeezing the extremists out of Iraq and Syria.
Interior minister Gerard Collomb hailed in a tweet the "sang-froid and reaction of the police who neutralised the attacker".
Paris police said the attacker died.
The attack took place on Rue Monsigny in the second arrondissement, an area that lies between the main opera house and the Louvre museum, two major tourist attractions.
After the attack, French President Emmanuel Macron said that "France once again pays the price of blood" and that the country would not cede to "enemies of freedom".
The identity of the man and the reason for the attack are unclear.
French media reported that two people are dead, and BFM television said one of them is the alleged attacker. The motive for the attack was not immediately known.