The attack took place at a non-Muslim cemetery in the Saudi capital of Jeddah, according to a senior reporter from French newspaper Le Figaro.
Veteran journalist George Malbrunot, who was once held hostage in Iraq, reported a “grenade was thrown” at the ceremony injuring at least two people.
He reports the weapon was hurled over the wall of the cemetery, and a diplomatic source has described it as an “isolated act”.
At least one of the injured is reported to be a Greek national.
French senator Damien Regnard tweeted: “All my support to our compatriots in Saudi Arabia and in Jeddah.”
Reports also state senior diplomats from France, the UK and Ireland were present at the event.
The US Consulate in Saudi Arabia has reportedly issued a warning following the reports of the attempted attack.
It reads: “The US Consulate-General in Jeddah is following an explosion that occured at the non-Muslim cemetery in central Jeddah.
The Sun Online has contacted the UK Foreign Office.
It comes after a security guard was stabbed at the French consulate also in Jeddah.
France has become the focus in a row over cartoons of the Prophet Mohammed published by Charlie Hebdo.
The nation has been targeted by several attacks in recent months as it refused to condemn the cartoons as it defends it values on free speech.
Prophet Mohammed cartoons have been displayed in France in solidarity after the beheading of Charles Paty, a teacher, in Paris.
Emmanuel Macron has said he would redouble efforts to stop conservative Islamic beliefs subverting French values – which has angered many Muslims.
Reports of the attack on the ceremony come as the world marks Remembrance Day – also known as Armistice Day.
It remembers the agreement between the Allies and Germany on November 11, 1918, to stop fighting which marked victory for the Allies and defeat for Germany in World War One.
It was signed in Compiegne in Northern France and came into effect on the 11th day of the 11th month at 11am.
The armistice forced the Germans to evacuate invaded countries and territories within two weeks.
Although hostilities continued in some areas, the armistice essentially brought an end to fours years of fighting in the First World War.
