The meeting marks a return to the world stage for the Syrian president, after France accused Damascus of involvement in ex-Lebanese PM Rafiq Hariri's death.
The talks are already producing results, with Mr Sarkozy saying Syria and Lebanon had agreed to open embassies in each others' capitals.
Diplomatic ties between the two nations ceased after Hariri's killing in 2005.
In a joint statement issued after the meeting, Mr Assad also said he wanted France and the US to contribute to peace efforts between Syria and Israel.
But, according to Reuters news agency, Mr Sarkozy added that conditions were not yet right for direct Syria-Israel talks. BBC NEWS