French interior minister Claude Gueant Wednesday denies the arrest of the serial killing suspect who shot dead seven in Toulouse and Montauban, local TV France24 reported.

"Interior Minister Claude Gueant confirms Mohammed Mera (the suspect) has not been arrested", the TV channel said in its live reporting on the Toulous event, contradicting an earlier report by BFM TV.

Police sources were telling FRANCE 24 that the suspect has not yet been detained.

The report mentioned a Reuters interview with Toulouse Deputy Mayor Jean-Pierre Havrin, who said "I'm standing 50 meters from the (besieged) apartment. Any nearer and I would actually be inside with him. This report about him being arrested is absolute nonsense."

The suspect had been surrounded by police in his residence in northern Toulouse since early morning.