The bird market on Louis Lepine square in the centre of the French capital has long been a fixture in Paris, operating close to the famous flower market.
But Christophe Najdovski, Paris' deputy mayor in charge of animal welfare, said that the market was a centre for bird trafficking in France while conditions for the birds were not acceptable.
“This is why we are committed to changing the regulations to ban the sale of birds and other animals,” he said.
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The closure had been urged by activists from the Paris Animals Zoopolis collective who had called the practice of showing the caged birds “cruel and archaic”.
France and Paris have in the last months adopted a series of measures aiming to show they are at the forefront of efforts to protect animal welfare.
The government said in September it planned to “gradually” ban mink farms as well the use of wild animals in travelling circuses and dolphins and orcas in theme parks.
Parc Asterix, which normally has some two million visitors a year, announced last month it would close its dolphin and sea lion aquarium.