Thousands of celebrating fans occupied the Champs-Elysees here on Wednesday as France qualified for its second World Cup final in eight years.

"We're in the final," the crowd chanted on the renowned avenue where one million people celebrated when France won the World Cup on home soil in 1998.

They will have another chance to gather on Sunday when France take on Italy in Berlin's Olympic Stadium.

Elsewhere in the capital, 25,000 fans gathered at the Charlety stadium to follow the action from Munich.

A first-half penalty from Zinedine Zidane settled the match in Munich, sparking wild scenes of celebration.

The goal from Zidane, who scored twice in the 1998 final and will now end his professional career by playing in another, was cheered especially loudly in his birthplace, the southern city of Marseille, where around 2,000 people watched the match on a giant screen in the Old Port area.

They were also watching every kick of the match in the Algerian village of Aguemoune, 260 kilometres east of Algiers, where Zidane's parents come from.

The "Cafe de Zizou", named in honour of the inspirational midfielder, erupted in joy at the final whistle and people hugged, kissed and danced and owner Said Arkoub kept his promise of buying everyone a drink if France won.

"We are proud of being, in a small way, close to the prodigy," he said.

And in the northern French port of Boulogne-sur-Mer, they were toasting Franck Ribery, the attacking midfielder who has emerged as a new star of the team.