Police managed to rescue the three other persons inside the church in the small northwestern town of Saint-Ètienne-du-Rouvray, he told reporters.
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Sarkozy has called for the detention or electronic tagging of all suspected Islamist militants, even if they have committed no offence.
Along with an accomplice, Kermiche took two nuns and two worshippers hostage.
According to French President Francois Hollande, the attackers claimed they were acting on behalf of ISIS, something the group also claimed via an affiliated news agency.
Kermiche has been charged with attempts to join the terrorist group after two attempts to travel to Syria using fake identities in 2015.
After a short trial he was jailed and released in March.
Hassan Tarchich, a former town resident of Moroccan descent, came back to Saint-Etienne Tuesday night after work to bring flowers and a candle to the house of the priest nearby.
Two Islamic terrorists burst into a church during Mass in Normandy, France.
When he heard about the attack, “I knew it was him, I was sure”, the young man told The Associated Press, identifying himself as Redwan.
“They recorded themselves. They did a sort of sermon around the altar, in Arabic”.
The second attacker has not been identified by authorities.
The attack has been claimed by Isis.
The scene in Normandy.
In a televised address to the nation Tuesday, he said: “To attack a church, kill a priest, is to profane the republic”.
The two nuns and a parishioner then left the church followed by the terrorists, one of whom was carrying a handgun, Mr Molins said.
“Horror and barbarism in Saint-Etienne-du-Rouvray”, he said. “We are all shocked”.
“We have been on high alert for a good while and you take the normal precautions you can”, he said.
“It’s not only Catholics targeted, it is all French people”, he said. “Terrorists will not give up on anything until we stop them”. The French town’s mosque was inaugurated on land given by the Catholic church. By 11.15am police had declared the attack over but urged the public to stay away from the area.
Brandet, speaking on BFM TV, said the RAID special intervention force was searching the church and its perimeter for possible explosives and terrorism investigators had been summoned.
One of those was Archbishop of Canterbury Justin Welby, who said: “Evil attacks the weakest, denies truth and love, is defeated through Jesus Christ”.
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The Islamic State group said the two assailants were its “soldiers” and the attack retribution for France’s fight against the jihadists in the Middle East.
