"True to its historic commitment to a just and lasting peace in the Middle East, I have decided that France will recognise the state of Palestine," Macron said.
"I will make this solemn announcement at the United Nations General Assembly next September."
Home to Europe's largest Jewish and Muslim communities, France will become the first major Western country to recognise a Palestinian state, potentially fuelling a movement so far dominated by smaller nations generally more critical of Israel.
The news sparked anger in Israel and Washington.
Israeli Prime Minister Benjamin Netanyahu condemned the decision by one of Israel's closest allies and a G7 member, saying such a move "rewards terror and risks creating another Iranian proxy."
In response, U.S. Secretary of State Marco Rubio said the United States "strongly rejects (Macron's) plan to recognize a Palestinian state at the UN general assembly."
In a post on X, he said, "This reckless decision only serves Hamas propaganda and sets back peace. It is a slap in the face to the victims of October 7th."
Earlier, Canada also pressed Israel to seek peace, with Prime Minister Mark Carney condemning its "failure to prevent the rapidly deteriorating humanitarian disaster in Gaza" and reiterating support for a two-state solution.
Carney also accused Israel of violating international law over the blocking of Canadian-funded aid to civilians in the war-torn Palestinian enclave.
"Canada calls on all sides to negotiate an immediate ceasefire in good faith," he added.
Reuters