The suspects, aged 23 and 29, were arrested by French domestic intelligence service agents in the southern city of Marseille, a police source said.
French Interior Minister Matthias Fekl said the “radicalised” men intended to strike “in the next few days in France”.
According to sources, police have recovered firearms and bomb materials from the two suspects.
France has remained on high alert since a string of terror attacks that began in 2015, which have killed over 230 people.
Meanwhile, photos of the two arrested suspects were distributed to the security teams of candidates in the upcoming French presidential election.
“The photos were passed to my security service from Thursday,” far-right candidate Marine Le Pen told the news agency AFP, while an aide to centrist Emmanuel Macron also confirmed receiving pictures.
Conservative Francois Fillon was warned about the danger on Friday, an aide said.