"This agreement initiates the preparatory phase for the possible use of French nuclear technology in South Africa," said the department.
The agreement builds on the more than 40 years of cooperation between South Africa and France for the Koeberg nuclear power plant.
The agreement - which was signed by Energy Minister Tina Joemat-Pettersson and Minister of Foreign Affairs of the French Republic, Laurent Fabius - covers skills development, localisation of nuclear technology as well as research and development in South Africa.
Joemat-Pettersson said that South Africa was pleased to continue its long-standing relationship with France.
"This paves the way for establishing a nuclear procurement process. To date, South Africa has concluded several Inter-Governmental Agreements and will proceed to sign similar agreements with the remaining nuclear vendor countries in preparation for the roll-out of 9.6GW Nuclear New Build programme," said Joemat-Pettersson.
She has signed a similar agreement with Russia.
The Presidency earlier this month said media reports that President Zuma has negotiated or will negotiate and conclude nuclear power agreements were incorrect.
In the State of the Nation Address in June, President Zuma said the country would prioritise energy security using a mix of coal, nuclear, shale gas and renewable energy to meet its goals.
At a media briefing earlier this month, the Energy Department said it was doing preparatory work towards the procurement process of nuclear power.
"There will be a procurement process and the work the department is doing is preparation for that," Deputy Director-General (DDG) for Nuclear Energy at the Department of Energy, Zizamele Mbambo, said at the time.
"The expansion of SA's nuclear programme will yield tremendous benefits for the country ranging including mining, beneficiation, manufacturing, industrialisation, skills development and power generation without a sharp increase in greenhouse gas emissions.
"Significantly, this programme will create jobs and provide South Africa with the knowledge it needs to achieve energy security," said Joemat-Pettersson
