attack by two armed men at his church near Rouen in northern France,
police and French media have said.
French TV said shots had been heard after police arrived at the scene. Both hostage-takers are now dead.
The area has been cordoned off and police have told people to stay away. At least one person is receiving medical treatment for injuries.
A woman who works in a local beauty parlour, Eulalie Garcia, said she had known the 92-year-old priest since her childhood.
“My family has lived here for 35 years and we have always known him,” she said.
“He was someone who was treasured by the community. He was very discreet and didn’t like to draw attention to himself.”
There was no immediate indication of the identity or motive of the hostage-takers, but France has been on high alert since the Bastille Day attack in Nice earlier this month, when a man ploughed a lorry into celebrating crowds, killing more than 80 people.