Meanwhile, London police said a 47-year-old man was arrested on suspicion of commission, preparation or instigation of terrorism including murder as well as attempted murder after a vehicle plowed into a crowd of pedestrians near a north London mosque.
So far no one has claimed responsibility for this possible attack, but this shows that France is still under a terror threat.
Interior Minister Gerard Collomb said that weapons and explosives were found inside the vehicle.
No one else was injured, and the Champs-Elysees reopened overnight after being closed for hours for security measures.
After a series of major terrorist attacks that occurred in France over the past two years, the country is in a state of emergency.
Anti-terrorism prosecutors are investigating the incident, Interior Ministry spokesman Pierre-Henry Brandet said. Initial reports suggested that the man's auto burst into flames after hitting the gendarmerie van, after which police had to break windows to drag the unconscious driver from the vehicle.
The Champs Elysees - one of Paris' busiest thoroughfares and moments from the presidential palace and USA embassy - again the target of a potential terrorist attack. At least 84 people died in a truck attack on a crowd in Nice a year ago and similar incidents have occurred in London and Berlin. Just last month, a man attacked a police officer with a hammer at Notre Dame Cathedral in Paris, while shouting, "This is for Syria!"
"I'll go back to my hotel now", said Alexander Ferreira. That attack followed the Charlie Hebdo attack which killed 12 in January 2015. He said he will present a bill Wednesday at a Cabinet meeting to extend the state of emergency from July 15, its current expiration date, until November 1.
"To those who question the necessity of such laws, you can see that the state of France today necessitates it", Collomb said.
He added that "nobody can be satisfied - and certainly not me" that Dzaziri had still been able to possess risky weapons.