France launches terror investigation after decapitated body found in Lyon

France on Friday launched a terror investigation after a decapitated body and a flag with Islamic inscriptions on it were found in Lyon.

Another person was injured in what is suspected to be an attack on a US gas factory in Saint-Quentin-Fallavier near the city of Lyon, reported the BBC.

Reports claimed that the attack was carried out by two assailants who drove into a factory carrying the flag.

Meanwhile, the anti-terror police have nabbed a suspect, officials said.

In the wake of the attack, French President Francois Hollande will leave the European Union summit in Brussels this afternoon and return to France.

Security has been beefed up at sensitive sites around Lyon in the aftermath of the attack.

This suspected terror attack comes nearly six months after the infamous strikes at the Charlie Hebdo offices in Paris, which led to the death of 12 people.