Former French president Nicolas Sarkozy has been sentenced to five years in jail after being found guilty of criminal conspiracy in a case related to millions of euros of illicit funds from the late Libyan leader Col Muammar Gaddafi.

The Paris criminal court acquitted him of all other charges, including passive corruption and illegal campaign financing.

The ruling means he will spend time in jail even if he launches an appeal, which Sarkozy says he intends to do.

Speaking after Thursday's hearing, the 70-year-old, who served as president from 2007 to 2012, claimed that the verdict was extremely serious for rule of law.

Sarkozy, who believes the case is politically motivated, was accused of using Gaddafi's funds to finance his 2007 election campaign, allegedly promising to assist Gaddafi in improving his standing with Western countries.

Judge Nathalie Gavarino stated that Sarkozy permitted close aides to engage with Libyan officials to seek financial support for his campaign, yet there was insufficient evidence to conclude that he directly benefited from illegal campaign financing.

In addition to the prison sentence, Sarkozy was ordered to pay a fine of €100,000 ($117,000, £87,000).

Upon hearing his sentence, the court was filled with shocked gasps. Sarkozy could potentially be incarcerated in Paris within days, marking a historic first for a former French president and a humbling outcome for a man who vehemently defends his innocence amidst numerous legal battles.

Outside the courthouse, Sarkozy stated, What happened today... is of extreme gravity in regard to the rule of law, and for the trust one can have in the justice system. He added, If they absolutely want me to sleep in jail, I will sleep in jail, but with my head held high.

The investigation commenced in 2013, spurred by allegations from Saif al-Islam, son of Gaddafi, who claimed Sarkozy received substantial funds for campaign purposes. This was supported by Lebanese businessman Ziad Takieddine, who hinted at written evidence indicating that Sarkozy's campaign had been significantly financed by Libya, even after he took office.

Among other defendants in the case were former interior ministers Claude Gueant and Brice Hortefeux, with Gueant found guilty of corruption and Hortefeux guilty of criminal conspiracy.

Sarkozy’s wife, Carla Bruni-Sarkozy, was charged last year with attempting to conceal evidence linked to the Gaddafi affair, which she denies.

Since his 2012 electoral defeat, Sarkozy has faced multiple criminal investigations, including a ruling that found him guilty of overspending on his 2012 campaign, resulting in a one-year sentence (six months suspended).

In 2021, he became the first former French president to receive a custodial sentence for attempting to bribe a judge and was allowed to serve his time at home with an electronic tag.