France's former president Nicolas Sarkozy ordered to serve prison time in historic first

He was also fined 100,000 euros ($117,000) and banned from holding public office. He has been convicted already in two separate trials but always avoided jail, in one case serving his graft sentence with an electronic tag, which has since been removed.

Sarkozy, who was present in court for the verdict accompanied by his model and musician wife Carla Bruni-Sarkozy, vowed to appeal.

The verdict was "extremely serious for the rule of law", he told reporters after leaving the courtroom, adding that he would appeal the decision and "sleep in prison with my head held high".

- 'Exceptional gravity' -

The presiding judge, Nathalie Gavarino, said the offences were of "exceptional gravity" and "likely to undermine the confidence of citizens."

The court's ruling however did not follow the conclusion of prosecutors that Sarkozy was the alleged beneficiary of the illegal campaign financing. He was acquitted on separate charges of embezzlement of Libyan public funds, passive corruption and illicit financing of an electoral campaign.

Another defendant in the trial, Alexandre Djouhri, who is accused of being the intermediary in the scheme was sentenced to six years and ordered to be placed immediately under arrest.

Sarkozy's right-hand-man Claude Gueant and ex-minister Brice Hortefeux were ordered to serve six and two years respectively. Hortefeux, 67, will be able to serve his term with an electronic tag while Gueant, 80, will not go to prison due to the state of his health.

Eric Woerth, Sarkozy's 2007 campaign treasurer, was acquitted.

- Accuser's death -

In a dramatic coincidence, the judgement was issued by the Paris court two days after the death on Tuesday in Beirut of Franco-Lebanese businessman Ziad Takieddine, a key accuser of Sarkozy in the case.

Takieddine, 75, had claimed several times that he helped deliver up to five million euros ($6 million) in cash from Kadhafi to Sarkozy and the former president's chief of staff in 2006 and 2007.

He then spectacularly retracted his claims before contradicting his own retraction, prompting the opening of another case against both Sarkozy and Bruni-Sarkozy, on suspicion of pressuring a witness.

Prosecutors argued that Sarkozy and his aides devised a pact with Kadhafi in 2005 to illegally fund Sarkozy's victorious presidential election bid two years later.

Investigators believe that in return Kadhafi was promised help to restore his international image after Tripoli was blamed by the West for bombing a plane in 1988 over Lockerbie, Scotland and another over Niger in 1989, killing hundreds of passengers.

Kadhafi was ultimately overthrown and killed by his opponents in 2011 during the Arab Spring as a NATO military intervention -- in which France under Sarkozy played a key role -- enforced a no-fly zone.

Sarkozy was first convicted for graft and sentenced to a one-year jail term, which he served with an electronic tag for three months before being granted conditional release.

He has faced repercussions beyond the courtroom, including losing his Legion of Honour -- France's highest distinction -- following the graft conviction.

But the man still enjoys considerable influence and popularity on the right of French politics, and is known to have President Emmanuel Macron's ear.