"This decision is a regrettable decision that France does not support and goes against international law and all the resolutions of the UN Security Council," Macron told reporters at a news conference.
Macron also called for calmness across the Middle East.
"The status of Jerusalem is a question of international security that concerns the entire international community. The status of Jerusalem must be determined by Israelis and Palestinians in the framework of negotiations under the auspices of the United Nations," he added.
The French president's statement comes in the wake of Donald Trump's announcement that he declares Jerusalem as the capital of Israel and orderes the Department of State to take measures for the relocation of the embassy from Tel Aviv to Jerusalem.
The Arab world fiercly condemned Trump's looming decision over Jerusalem's status, warning that such move would threaten the peace process in the region.
Trump pledged to recognize Jerusalem as the undivided capital of Israel and to move the US embassy to Jerusalem during his presidential campaign in 2016. However, in June, Trump signed a waiver to keep the US Embassy to Israel in Tel Aviv and delay moving the mission to Jerusalem. The White House explained Trump's move as an attempt to "maximize the chances of successfully negotiating a deal between Israel and the Palestinians."