Police launched a manhunt after the killer opened fire at around 8pm local time on one of the city's busiest streets, sending crowds of evening shoppers fleeing for safety.
Mayor Roland Ries earlier said that four people had been killed and three or four of the injured were in critical condition.
Soldiers patrolling the area as part of regular anti-terror operations exchanged fire with the suspect and injured him, but could not stop him escaping, police sources said.
Police identified the suspect as Strasbourg-born Cherif Chekatt, 29, who was known to the intelligence services as a potential security risk.
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