An SUV driver who ran over a cyclist following an altercation in central Paris has been charged with murder after a court hearing, a source close to the case said on Friday.

The 52-year-old driver of the SUV is accused of having deliberately targeted the cyclist, 27, on Tuesday.

Another judge will now rule whether he should be held in custody ahead of trial.

Tuesday's incident in Paris's wealthy 8th district comes as tensions rise in the battle for street space in the congested capital.

Tense exchanges between cyclists and drivers are commonplace in the city centre.

The driver, whose teenage daughter was also in the car, was arrested on the spot.

Earlier, the motorist and the cyclist were seen having an angry dispute by the side of the road.

French associations promoting cycling have condemned the incident, with "Paris en Selle" calling it "an unacceptable tragedy."

Last year, 226 cyclists died on French roads. (AFP)