The Islamic State, through its affiliated Amaq News Agency, claimed responsibility for that attack.
As The Two-Way has reported, a man opened fire on police in April killing one officer and wounding two others.
Gerard Collomb, France's interior minister, addressed reporters Monday afternoon, saying that the Champs-Elysees attacker's vehicle contained weapons and explosives.
In a message on their official Twitter account, police said an operation was ongoing in the Champs Elysées and citizens should avoid the area.
Footage recorded shortly afterwards showed orange smoke billowing from the auto.
Police sources told AFP that they found a Kalashnikov assault rifle, two handguns as well as a gas bottle on the auto.
Odihe said he also saw bottles of gas, one of which apparently exploded inside the vehicle. Sources previously told AFP that there were multiple gas bottles in the auto.
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Police quickly declared the situation "under control" and a bomb squad responded to the scene after explosives and a gun were found inside the driver's vehicle.
Police said the 31-year-old man had been flagged for extremism. "Some shouted at me to get away".
The Paris prosecutor's counter-terrorism unit has opened an investigation into the incident.
Police forces secure the area on the Champs ElysÃ©es in Paris, Monday, June 19, 2017. He added, "This shows, once again, the threat level in France is extremely high", Collomb said. Consequently, the officials are treating the incident a terrorist attack.
No police or bystanders were injured in the incident on the Champs-Elysees, where a jihadist shot dead a policeman two months ago.
"I couldn't understand, but I find it really odd that a auto would pass (police) vans and all of a sudden spit fire", said Pfister. France is under a state of emergency after a string of deadly Islamic extremist attacks.