Former French President Nicolas Sarkozy has been handed a five-year prison sentence after being convicted of criminal conspiracy in a case involving millions of euros in illicit funds allegedly received from the late Libyan leader Col Muammar Gaddafi.

The criminal court in Paris cleared him of several other accusations, including passive corruption and illegal financing of his political campaign.

Following the verdict, the 70-year-old Sarkozy who led France from 2007 to 2012 told reporters that the decision was “extremely serious for rule of law”.

Sarkozy, who has maintained that the case is driven by political motives, was accused of accepting funds from Gaddafi to support his 2007 presidential campaign. Prosecutors argued that, in return, Sarkozy had agreed to help Gaddafi improve his image with Western nations, where the Libyan leader was widely regarded as a pariah.

Judge Nathalie Gavarino stated that Sarkozy permitted members of his inner circle to approach Libyan authorities to secure financial backing for his campaign.

However, the court found insufficient proof to conclude that Sarkozy personally received the illegal campaign contributions.

Despite this, he was sentenced to five years in prison, and the judgment requires him to serve time even if he chooses to appeal.

In addition to the prison term, Sarkozy was fined 100,000 euros (£87,000).

The courtroom reportedly reacted with audible shock as the judge announced the sentence.

It is possible that Sarkozy will soon be incarcerated in Paris — an unprecedented outcome for a former French president and a significant setback for someone who has consistently asserted his innocence, not only in this case but in other legal matters as well.

Speaking outside the courtroom, Sarkozy reaffirmed his innocence and vowed to challenge the ruling on appeal.

“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.

“If they absolutely want me to sleep in jail, I will sleep in jail, but with my head held high,” he said.

The investigation into the case began in 2013, two years after Saif al-Islam, the son of Gaddafi, alleged that Sarkozy had accepted millions from his father to fund his campaign.

In 2014, Lebanese businessman Ziad Takieddine — a long-time intermediary between France and the Middle East — claimed he had documentary evidence that Sarkozy’s campaign was “abundantly” financed by Tripoli, stating that around €50 million (£43 million) continued to flow even after Sarkozy assumed the presidency.

Also implicated in the case were former interior ministers Claude Guéant and Brice Hortefeux. Guéant was found guilty of corruption and other charges, while Hortefeux was convicted of criminal conspiracy.

Sarkozy’s wife, Carla Bruni-Sarkozy an Italian-born former supermodel and singer  was charged last year with concealing evidence connected to the Gaddafi affair and associating with others to commit fraud. She denies all allegations.

Since his unsuccessful re-election campaign in 2012, Sarkozy has faced multiple legal probes.

He is also appealing a February 2024 conviction for exceeding spending limits during his 2012 re-election bid and subsequently employing a PR firm to cover it up. That case resulted in a one-year sentence, with six months suspended.

Back in 2021, Sarkozy became the first former French president to receive a custodial sentence when he was found guilty of attempting to bribe a judge in 2014. In December of that year, a Paris appeals court ruled he could serve that sentence under house arrest with an electronic tag.