"The objective is to come up with a resolution," the source said, while Foreign Ministry spokesman Bernard Valero said the Libyan rebels trying to form a government after overthrowing Muammar Qaddafi needed the funds.
"The National Transitional Council should have access to the financial resources frozen by Security Council resolutions. We are currently working to this end in New York, in close cooperation with our partners," Valero said.
Valero said that discussions were at a "preliminary stage" and would not confirm the report that a resolution was being drafted.
"For France, and for all of its partners, the priority is to help the Libyans take control of their own destiny," he said.
Separately, British Foreign Minister William Hague said London was also working with its UN partners to free up the funds.