The decision comes as tensions are rising between Israel and France following comments by President Emmanuel Macron criticising the civilian casualties in the Israeli campaigns against Shiite militant group Hezbollah in Lebanon and Palestinian militant group Hamas in the Gaza Strip.
The French leader last week insisted that stopping the export of weapons used by Israel in both operations was the only way to halt the two conflicts.
"The French government informed Euronaval of its decision to approve the participation of Israeli delegations at Euronaval 2024, without any stand or exhibition of equipment," said the organisers of the show which is due to start on November 4 in Paris.
Following the decision, Israeli Defence Minister Yoav Gallant slammed Macron, calling the move a "disgrace".
"Macron's actions are a disgrace to the French nation and the values of the free world, which he claims to uphold. The decision to discriminate against Israeli defence industries in France a second time - aids Israel's enemies during war," Gallant said in a post on X.
"We will continue defending our nation against enemies on 7 different fronts, and fighting for our future - with or without France," Gallant added.
Euronaval, a biennial event that attracts naval defence exhibitors from around the world, said seven Israeli companies are affected by the decision.
"In accordance with the French government's decision, Israeli companies and citizens who wish to attend will be welcomed at the show under the conditions listed above," it added.
At the end of May, the presence of Israeli defence manufacturers at the Eurosatory land defence and security exhibition was banned by the government, before finally being authorised by the French courts.
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