Paris and Dublin were tied in the final vote, meaning the decision was made by pulling a name out of a hat.
The move will add fuel to the fire of France's ambition to become the new financial centre of Europe as some institutions leave the City of London. The European Banking Authority (EBA) headquarters will move to Paris along with more than 150 employees after Brexit.
French president Emmanuel Macron tweeted that he was "happy and proud for our country".
But it comes as a blow to the Irish government, which had made attracting the EBA a post-Brexit priority. Dublin initially had more votes than any other city but drew with Paris after Frankfurt was eliminated.
Irish foreign affairs minister Simon Coveney said he was "absolutely gutted" that the city had missed out.
Early favourite Frankfurt, which has also been vying for post-Brexit windfalls, was booted off the shortlist in the first round. In total, eight countries put forward bids for the authority.
The new location of the European Medicines Agency (EMA) was also announced earlier today, with Amsterdam beating Milan in another lucky-dip style decision after both received an equal number of votes.
Amsterdam will now bag the EMA's 900 employees and will play host to as many as 30,000 experts visiting for meetings each year.