France's defence ministry said Sjaak Rijke, kidnapped in Timbuktu in northern Mali in November 2011, was freed during "military action carried out by the French army's special forces."
"This combat action has also led to the capture of several individuals," added the ministry, referring to the dawn raid against Al-Qaeda in the Islamic Maghreb (AQIM).
It said Rijke was "safe and sound."
French President Francois Hollande also spoke of the operation, saying the freed hostage had been transported to a safe location and that a number of suspected jihadists had been killed.
"Several hours ago, French special forces were able to carry out an attack against a terrorist group and were able not only to neutralise the group, but also obtain the freedom ... Of a Dutch man who had been held hostage since November 2011," Hollande told journalists.
He said the assault occurred near Tessalit in Mali's far north, near the border with Algeria.
Asked whether the hostage was in good condition, Hollande said "as much as possible after four years of captivity."
Dutch Foreign Minister Bert Koenders said Rijke was "doing well considering the circumstances."
"It is extraordinary news for Sjaak and his family," Koenders said. "I am happy and grateful that this horrible period of uncertainty and distress is over."
Timo Huges, the head of the Dutch railway company, said he was "very relieved that Rijke was once again a free man," adding: "I hope he comes back to the Netherlands soon."
Rijke, who was 51 when he was kidnapped, and his wife were described in the Dutch media as seasoned travellers who were on a "dream trip" to cross the Sahara.
In November 2014, AQIM released a video of Rijke making a statement on the 1,000th day of his captivity.
Also seen on the video was Frenchman Serge Lazarevic, who was later freed in a prisoner swap against four jihadists in Mali.
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