France remains under a state of emergency imposed after the November 2015 attacks in Paris, when IS jihadists slaughtered 130 people in a night of carnage at venues across the city.
Police say the situation is now under control, and a bomb disposal unit is on the scene “to ensure the vehicle poses no further danger”, Mr Brandet said.
That incident recalled two other attacks on soldiers providing security at prominent locations around Paris, one at the Louvre museum in February and one at Orly airport in March.
Tomorrow, the French government is to unveil a new anti-terrorism law, created to allow the state of emergency to be lifted.
Interior Minister Gerard Collomb said the man was killed after an attempted attack on a police convoy, saying that shows the threat is still very high in the country and justifies a state of emergency in place since 2015. Authorities identified the suspect to The Associated Press as a 31-year-old man from the Paris suburb of Argenteuil who had an “S” file, meaning he was flagged for links to extremism.
The interior minister said he would be introducing a bill on Wednesday at a cabinet meeting to extend the state of emergency from 15 July, when it is set to expire, until 1 November.
A subway station in the area is closed. It was the second major incident on the avenue this year.
An attacker defending the Islamic State group fatally shot a police officer on the Champs-Elysees in April, days before a presidential election, prompting an extensive security operation.
Interior Ministry spokesman Pierre-Henry Brandet said that the man is “most probably” dead.
Police sources said that they found a Kalashnikov assault rifle, two handguns, ammunition as well as a gas bottle in the auto.
Wearing a white shirt and dark shorts, the suspect was seen lying prone on his stomach on the avenue, witnesses said.
Earlier this month, an attacker went after a police patrol with a hammer in front of Notre Dame Cathedral.
Police ringed the area as tourists and other onlookers gathered.
Police cordoned off the area only a short walk away from Elysees presidential palace and the USA embassy, Reuters reporters on site said.
The gunman, Karim Cheurfi, was shot dead by police and a note praising the Islamic State group was found next to his body.