The attacker was then shot dead by police in the Opéra district. Witnesses say they heard him shout "Allah Akbar".
So-called Islamic State (IS) later said one of its soldiers carried out the attack on Saturday evening.
It took place in an area renowned for its nightlife. People ran for cover into cafes and restaurants.
French President Emmanuel Macron tweeted (in French): "France has once again paid in blood, but will not give an inch to the enemies of freedom."
The attacker began stabbing passers-by at about 21:30 local time (19:30 GMT) on the rue Monsigny.
He also tried to enter several bars and restaurants, but was blocked by people hiding inside. Police arrived at the scene within minutes.
They first tried to stop the assailant with a stun-gun before shooting him dead. He has not been identified so far.
An eyewitness, named as Gloria, told AFP news agency: "The police arrived quickly.
"We didn't know what was going on, we were quickly moved inside the bar, I went outside and I saw a man lying on the floor."
Jonathan, a waiter at a local restaurant, told AFP: "I saw him with a knife in his hand. He looked crazy."
He said a woman the attacker had stabbed ran into into the restaurant bleeding. The assailant tried to follow her inside, but was fended off and finally fled.
Two of the wounded in the attack are in a serious condition.
Later in the evening IS claimed the attack in a brief statement posted on its news outlet.
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