A Paris court approved the settlement on Thursday, the national financial prosecutor’s office said.
McDonald’s said the settlement was the result of “productive discussions” with tax authorities.
The prosecutor’s office said McDonald’s France and other related companies agreed to pay a total of 1.24 billion euros in fines, penalties and back taxes to settle the case after years of negotiations.
The company was accused of hiding French profits in lower-tax Luxembourg from 2009 to 2020.
McDonald’s said in a statement that it had already paid 2.2 billion euros (£1.8 billion) in taxes over that period. It did not comment on the accusations.
“The majority of the anticipated tax settlement has already been accrued for” and was reflected in the company’s last quarterly earnings.