The €600m bail out will be handed out over three years and comes on top of the €1.5bn in state-aid and tax breaks given to the newspaper industry every year.
A year's free subscription of any state-subsidised newspaper for the country's 18-year-olds is also part of the deal, as Sarkozy encourages a new generation to take to reading their daily paper.
Sarkozy said: "The habit of reading a daily paper takes hold at a very young age."
New measures will also be taken to decrease France's abnormally high printing costs, which are currently under the control of the communist union, Le Livre. Tax breaks will also be given to boost distribution networks.
International investors, who are currently tied down with a 20% ownership ceiling, will also be granted greater access to French titles, including extended tax breaks for online investment.
Sarkozy has also pledged that the state would double its advertising in print and online.
Plans are also in the works to introduce more newspaper kiosks and newsagents around the country.
In 2007, only two national titles remained in the black, L'Equipe and Les Echos. Sluggishness in advertising revenue has weighed down the country's other titles, including Le Monde and Liberation.
Earlier this month Sarkozy came under fire for banning primetime advertising on France's state-owned television channels in a bid to create a rival to the BBC.
French journalists threatened strike action, claiming that the move would shift shrinking advertising revenue to privately-owned broadcasters.
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