The suspected attacker, who tried to gain entry to the Louvre’s shopping center, was shot in the abdomen and seriously injured.
One soldier sustained a slight head injury.
French PM Bernard Cazeneuve said the attack was “terrorist in nature”. The Louvre is home to numerous celebrated art works, including the Mona Lisa.
The incident began at 10:00 local time in the Carrousel du Louvre shopping center at stairs leading to an entrance to the museum itself.
A patrol of four soldiers are reported to have tried to subdue the assailant using non-lethal force after he rushed at them.
When this failed and after one soldier was injured, five shots were fired. The suspected attacker was taken to hospital.
Two backpacks belonging to the suspect, who shouted “God is greatest” in Arabic, have been inspected but no explosives were found. A second person has been arrested.
Little is known about the main suspect, who is reported to be in his 30s and without identity papers.
Hundreds of visitors in the Louvre at the time were evacuated gradually after security checks.
As the attack unfolded, they were told by security staff to crouch on the floor.
France has been on a high state of alert since the Paris attacks of 2015. Thousands of troops on the streets form part of the stepped-up security response.
The Louvre was ranked as the world’s most visited museum in 2015 but there are doubts whether it still holds the top spot.
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