A man has been decapitated after an attacker brandishing an Islamist flag raided a French factory in Grenoble, according to reports.

 

There are also reports of a loud explosion at the factory and several other victims.

 

Sources said at least one arrest had been made, though there are also reports of two attackers, both carrying Islamist flags.

 

Le Parisien newspaper reported that shots had been fired and one Islamist had been killed.

 

Other sources said that two men rammed the factory in a car before entering and setting off several small explosive devices.

 

A decapitated body was found nearby the factory, another source said.

 

Le Dauphine newspaper said a man's head had been found on a fence along with an Islamist flag.

 

Employees at the factory - Air Products - are said to be "very shocked".

 

The attack came nearly six months after the Islamist attacks in and around Paris that killed 17 people in January.

 

Those attacks started with a shooting at satirical magazine Charlie Hebdo.

 

Interior Minister Bernard Cazeneuve said he would go "immediately" to the scene, his office said.

(Sky News)