The prosecution claims Sarkozy spent nearly double the legal limit of 22.5 million euros (USD 24 million) on his lavish campaign, using false billing from a public relations firm called Bygmalion.
A legal source said today that one of two investigating magistrates in charge of the case, Serge Tournaire, had decided on February 3 that the case should go to trial.
Sarkozy's lawyer announced plans to appeal the decision.
Bygmalion charged 15.2 million euros in campaign events to Sarkozy's rightwing party -- which at the time was called the UMP, but has since been renamed the Republicans -- instead of billing the president's campaign.
Sarkozy, who failed in a presidential comeback bid last year, told investigators last year he knew nothing about the billing and put the responsibility squarely on Bygmalion and the UMP.
Only one other president -- Jacques Chirac -- has been tried in France's Fifth Republic, which was founded in 1958.
He was give a two-year suspended jail term in 2011 over a fake job scandal.
News of the trial comes as the Republicans' candidate for this year's presidential election, Francois Fillon, faces his own scandal over parliamentary jobs for his family.
The son of a Hungarian immigrant father, Sarkozy was nicknamed the "bling-bling" president for his flashy displays of wealth.
His trial will focus on whether he himself caused the over-spending in 2012 by demanding that additional rallies be organised towards the end of his campaign, even though they were bound to blow the budget.
The judicial source said he was accused of having ignored two warnings from advisors in March and April 2012 about his spending, which came to "at least 42.8 million euros".
He could yet be spared trial, however, given that the second investigating magistrate in the case disagreed that Sarkozy be put in the dock.
Thirteen other people will be tried alongside him on charges ranging from fraud to illegal campaign financing, including Bygmalion's management and Jerome Lavrilleux, deputy manager of Sarkozy's lavish 2012 campaign.
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