France's President Emmanuel Macron speaks during a Ministerial meeting on the implementation of the Middle East peace plan at the Quai d'Orsay, France's Ministry for Europe and Foreign Affairs, in Paris. AFP
Macron hailed the ceasefire deal as a "great hope" for the region, but said Israeli settlement expansion in the occupied West Bank was an "existential threat" to a Palestinian state.
It was "not only unacceptable and contrary to international law" but "fuels tensions, violence, and instability", he said as he presided over the meeting in Paris.
"It fundamentally contradicts the American plan and our collective ambition for a peaceful region."
Israel and Hamas earlier agreed a Gaza ceasefire deal to free the remaining living Israeli captives held in Gaza.
The deal brokered through indirect talks in the Egyptian resort of Sharm el-Sheikh is seen as a major step towards ending Israel's two-year war on the territory.
Israeli bombardment has killed at least 67,000 Palestinians and injured nearly 170,000, mostly women and children, according to Gaza's health ministry.
While Europe has strongly supported the ceasefire efforts spearheaded by President Donald Trump, Washington and several European countries are at odds over Palestinian statehood.
Macron, in a September 22 speech at the United Nations, recognized a Palestinian state on the heels of similar announcements by Canada, Portugal and the United Kingdom.
The Paris meeting brings together the top diplomats of five key Arab states -- Egypt, Jordan, Saudi Arabia, Qatar and the United Arab Emirates -- with European counterparts from France, Italy, Germany, Spain and the United Kingdom.
Turkey and the European Union will also be represented.
Macron "will reiterate France's constant mobilization in favor of a comprehensive political solution by working to prepare for the 'day after'", the Elysee said in a statement, adding the president supported the full implementation of Trump's peace plan.
The agenda at the Paris meeting includes the International Stabilization Force evoked by Trump as part of his peace plan and support for the Palestinian Authority which governs the occupied West Bank, a French diplomatic source said this week, asking not to be named.
"It is essential to act together and get down to work," said German Foreign Minister Johann Wadephul.
Berlin, a staunch ally of Israel, has repeatedly said it disagrees with the move by France and other European countries to recognize a Palestinian state.
Short link: