Michel Barnier's government was voted out after losing a motion de censure (no-confidence motion) in the Assemblée Nationale, with 331 of the 577 MPs in parliament backing the motion.
The motion was put forward by the leftwing Nouveau Front Populaire alliance and backed by Marine Le Pen's Rassemblement National, giving it a combined majority.
Losing the vote means that Barnier is legally and constitutionally obliged to resign, leading to the collapse of the government. The French press reported that he would do so at 10am on Thursday.
He becomes the shortest serving prime minister in the history of the Fifth Republic (since 1958) with just 90 days in office.
However it is expected that he and his ministers will stay on in a caretaker role until President Emmanuel Macron nominates a new prime minister.
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Barnier was appointed in September by Macron as a compromise candidate after summer elections left the parliament deadlocked with no party having a majority.
However Barnier was unable to build a consensus in the deeply divided parliament over the 2025 Budget and resorted to using the constitutional tool known as Article 49.3 to force it through without a vote, sparking the confidence motion.
The fall of his government also means that the Budget has been struck down, leaving France with no financial plan for 2025.
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