Paris, France: French police stopped an apparent bomb attack outside a US bank in Paris early Saturday when they arrested a man about to set off a homemade explosive device, sources close to the case told AFP.

The incident occurred around 3:30 am (0130 GMT) in front of a Bank of America building in the chic 8th arrondissement, a couple of streets from the Champs-Elysees.

Police grabbed the man just after he placed a device, made of five litres of liquid (nine imperial pints), believed to be fuel, and an ignition system, one of the sources said.

France's counter-terrorism prosecutor's office told AFP it has taken over the investigation into a foiled bomb attack outside a Bank of America branch in central Paris.

The office confirmed that a suspect caught in the act was in police custody and said it was investigating "attempted damage by fire or other dangerous means in connection with a terrorist undertaking" and a "terrorist criminal conspiracy".

Both the Paris judicial police and France's domestic intelligence service, the General Directorate for Internal Security (DGSI), are involved in the probe, the office told AFP.