The bill is the latest in a series of government-proposed reforms in the wake of a jihadist killing spree that left 17 people dead in January, The Local reported Tuesday.
The new law will allow authorities to keep an eye on the digital and mobile communications of people linked to a "terrorist" inquiry and will make it obligatory for Internet service providers and phone companies to give up data upon request.
Intelligence services will be allowed to place cameras and recording devices in private dwellings and install "keylogger" devices that record every key stroke on a targeted computer in real time.
Amnesty International has also protested against the legislation, warning it will take France "a step closer to a surveillance state."
After it is voted on by the lower house, the National Assembly, the bill will move to the upper house, the Senate, for further debate, The Local report said.