Abdelhami Abaaoud, the mastermind of the attacks who was believed to be in Syria, was identified as being inside the building.
Suspect Salah Abdeslam, who was the subject of an international arrest warrant after hiring a car used in the attack, was also inside.
A woman - believed to be a relative of Abaaoud - blew herself up using a suicide vest as gunfire was exchanged between the suspects and police. A second suspect was shot dead by a police sniper.
Seven people were arrested and several officers were also injured in the six-hour stand-off blocked off the area around Place Jean Jaures. Police also smashed down the doors of a nearby church as a hunt for the suspects continued.
33 ISIS militants killed in 72 hours of air strikes
A total of 33 ISIS militants are reported to have been killed in air strikes in Syria in the 72 hours of bombing by France and Russia.
The ISIS stronghold of Raqqa has seen the majority of bombing - Islamic State command and control centres, a jihadi recruitment centre, munitions depots and training camps have been among the targets.
President Francois Hollande described France as being "at war" against Islamic extremism and has vowed to destroy Islamic State.
President Francois Hollande described France as being "at war" against Islamic extremism and has vowed to destroy Islamic State.
The UK-based Syrian Observatory for Human Rights said most died when checkpoints around the city were hit.
All 129 victims identified
The French government confirms all 129 people killed in Friday's Paris attacks have been identified.
A statement released said around 100 families have come to see the bodies of those killed at the Bataclan theatre, in cafés and outside the Stade de France.
The death toll could rise if critically ill victims do not recover.
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