The 73-year-old head of the MoDem group, which is allied to Macron's party, was appointed nine days after parliament ousted Michel Barnier's government in a historic no-confidence vote following a standoff over an austerity budget.
"The president of the Republic has appointed Mr. Francois Bayrou as prime minister and tasked him with forming a government," the presidency said.
The announcement capped hours of drama that saw Bayrou summoned to a morning meeting at the Elysee palace - where he was reportedly told Macron would choose another figure - only for the presidency to finally announce he had the post.
Bayrou is the sixth prime minister of Macron's mandate, with his predecessor Barnier France's shortest-serving premier, having lasted only three months.
He is also Macron's fourth prime minister of 2024.
The newly appointed premier faces the immediate challenge of forming a cabinet that can survive a no-confidence vote in a divided parliament and thrashing out a 2025 budget in a bid to limit economic turmoil.
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