Police said there were no casualties but a security operation is under way and people are being asked to avoid the area.
The suspect was seen lying prone on his stomach on the avenue. He has now been arrested and police say the situation is under control.
Authorities have said the driver rammed his car into a police vehicle.
According to police officials, the suspect was subsequently injured in an apparent clash with police.
The Paris prosecutor's counter-terrorism unit has now opened an investigation into the incident.
More follows...(c) Sky News 2017: Suspected attacker 'downed' in Paris after car crashes into police vehicle