One man has been decapitated and several others injured in a suspected Islamist terror attack on a factory near Lyon.

One or more attackers are reported to have rammed their way into the Air Products factory in Saint-Quentin-Fallavier at 09:50 local time (07:50 GMT).

The vehicle they were driving contained a number of gas cannisters, which caused an explosion.

The men were carrying flags with Arabic writing, although the exact affiliation and motivations of the attackers are not yet clear.

French media reports that the severed head of the deceased victim was pinned to gates of the factory and covered in Arabic inscriptions, according to local newspaper Le Dauphine.

French police have arrested one suspected attacker, according to French news agency AFP. The man was reportedly already known to French intelligence.

In response to the attack, French Prime Minister Manuel Valls has ordered tighter security on sensitive locations across France.

French President Francois Hollande has also said that he wuld be returning to France immediately from the EU summit.

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