The court ordered that Nicolas Sarkozy should be placed in custody at a later date, with prosecutors given one month to inform the former head of state when he should go to prison.
Sarkozy had appealed against the 2021 conviction for corruption and influence peddling, in which he had been handed a three-year prison sentence.
The court will allow him to serve the sentence at home by wearing an electronic monitoring bracelet.
The 66-year-old politician, who was president from 2007 to 2012, was convicted for having tried to illegally obtain information from a senior magistrate in 2014 about a legal action in which he was involved.
Sarkozy is accused of offering to help a judge win promotion in Monaco in return for leaked information.
According to prosecutors, Sarkozy's lawyer tried to get information from judge Gilbert Azibert over the status of a campaign financing investigation.
Sarkozy, 63, had until now refused to respond to a summons for questioning in the case, which drew heightened scrutiny last November when a businessman admitted delivering three cash-stuffed suitcases from the Libyan leader as contributions towards the French leader's first presidential bid.
Sarkozy, who led France for five years from 2007, lost his bid for another presidential term in November after coming third in the primaries of his centre-right party.
The decision comes in the wake of the attacks in Paris following which world nations including India have rallied behind France.
Criminal charges against Lagarde, 57, would mark the second straight scandal for an IMF chief, after her predecessor Dominique Strauss-Kahn, also from France, resigned in disgrace over an alleged assault on a New York hotel maid.
Former French President Nicolas Sarkozy has given his strongest hint yet that he might make a comeback bid in 2017, telling a magazine a sense of duty to fix the economy might oblige him to run.
Rightist Jean-Francois Cope , an ally of former President Nicolas Sarkozy, claimed the leadership of France's main conservative party on Monday in a closely fought two-way contest marred by mutual accusations of voter fraud.
President Francois Hollande marked Bastille day celebrations on Saturday with a pledge to fight industrial layoffs and clean up French politics, after watching troops parade down the Champs Elysees as jets streamed the national colours overhead.
President Francois Hollande's Socialists are not surfing towards a landslide victory in parliamentary elections this month, yet a lesser triumph should still permit France's first left-wing leader in 17 years to rule effectively.
Outgoing French President Nicolas Sarkozy urged his divided conservative UMP party on Monday to pull together quickly after his election defeat to fight off a double challenge from the left and far-right in parliamentary polls next month.
An anti-austerity backlash by voters in Greece and France shook the euro zone on Monday, sending the euro currency and shares sliding.
After April's weak jobs report, investors will scrutinize each piece of economic data for a read on whether the economy`s soft patch is temporary or the start of something more troubling.
After Wall Street ended its worst week of the year on Friday, US stock investors will look across the Atlantic next week to take their cue from Europe as France and Greece go to the polls.
French President Nicolas Sarkozy, the underdog in a presidential election to be decided on May 6, waxed philosophical on Friday about the possibility of losing, telling a sports newspaper that defeat was part of life in sport and politics
Far-rightist Marine Le Pen threw France's presidential race wide open on Sunday by polling nearly 19% in the first round - votes that may tip a runoff between Socialist favourite Francois Hollande and conservative President Nicolas Sarkozy.
With his back against the wall, President Nicolas Sarkozy brushed off opinion polls that show he will lose France's presidential election to deliver a defiant speech three days from the first round of the vote.
Fears of a resurgence in the euro zone debt crisis boosted demand for safe-haven German bonds on Wednesday, while the Bank of England and a European Central Bank official signalled more monetary policy easing measures were unlikely.
In five years, Nicolas Sarkozy has gone from a man who won over a nation with raw and punchy speeches to the most unpopular president to seek re-election in France.
Socialist presidential frontrunner Francois Hollande accused Nicolas Sarkozy on Thursday of encouraging market speculation for political ends after the president said victory for Hollande could spur a crisis of confidence in France.
French President Nicolas Sarkozy said on Wednesday that France should not give in to a desire for revenge or discrimination over the killings of a rabbi and three children at a Jewish school in Toulouse.