The teacher is suspected to have been targeted outside a school earlier today because he had used cartoons of the Muslim prophet Mohammed in the classroom.
The victim was killed near a school in Conflans St Honorine, around 25 miles north of the French capital at around 5pm local time.
The killer then fled to the nearby town of Eragny-sur-Oise, two miles away, where he refused to surrender.
Police shot the armed suspect multiple times, according to reports from the scene.
The attacker – said to be an 18-year-old – reportedly shouted ‘Allahu Akbar’ in the street before he was gunned down by officers.
French President Emmanuel Macron has tonight described the attacker as an Islamic terrorist.
And Education minister Jean-Michel Blanquer tweeted that the republic had been attacked through the “despicable assassination of one of its servants”.
The attacker was claimed to have posted material showing the remains of the teacher on social media before he was killed.
Macron travelled to the school on Friday night to speak with staff following the day’s horror.
A source told Le Parisien earlier: “The victim had recently given a lesson to his students on freedom of expression and had shown the caricatures of Mohammed.”
Formal complaints had been made about the teacher, including by one parent who posted a video on YouTube expressing his anger, the news site reported.
The teacher had ‘invited Muslim students out of the classroom’ before showing a Charlie Hebdo caricature of the Prophet crouching with a star drawn on his buttocks and the inscription ‘A star is born’.
Seventeen people were killed in an attack on the Charlie Hebdo satirical magazine after Paris-born gunmen linked to Al-Qaeda broke into the offices and launched an attack after it published Mohammed cartoons mocking the Prophet.
One young girl – thought to be Muslim – stayed behind by mistake, and later told her parents that she had been shown a picture of a naked man, and he was described as the Prophet, according to reports.
The murdered teacher had been the subject of an active legal complaint after showing nude depictions of the Prophet, an investigating source said.
“Parents had complained… and then one widened the complaint by posting details online,” the source said.
“The killer was known to the police for minor acts of vandalism and the like, but not for being radicalised,” he added.
A police spokesman earlier tonight confirmed the victim was a middle school teacher.
It comes just weeks after an terrorism investigation was launched after two news agency staff were stabbed outside the former offices of Charlie Hebdo.