In a case that could wreck the 57-year-old's hopes of a political comeback, Sarkozy is suspected of taking financial advantage of elderly L'Oreal heiress Liliane Bettencourt when she was too frail to fully understand what she was doing.
Bettencourt is now 90 and has been in poor health since 2006.
Judicial sources have told AFP Sarkozy could be formally indicted on a charge of taking advantage of someone in a position of weakness, although the magistrate also has the option of interrogating him as a witness under caution.
Bettencourt's former accountant, Claire Thibout, told police that she had handed envelopes stuffed with cash to Bettencourt's right-hand man, Patrice de Maistre, on the understanding it was to be passed on to Sarkozy's campaign treasurer, Eric Woerth.
Maistre withdrew a total of four million euros ($5.2 million) in cash from Bettencourt's Swiss bank account in seven instalments between 2007 and 2009.
Kickback scandal
Sarkozy is also currently under investigation for alleged kickbacks on a Pakistani arms deal used to finance the right in 1995, when he was budget minister.
One of French ex-president Nicolas Sarkozy's allies was convicted Thursday of making threats to a lawyer for the families of 11 French engineers killed in a 2002 bombing in Karachi at the centre of the Pakistani kickback scandal.
Former minister Brice Hortefeux was ordered to pay a 5,000 euro ($6,400) fine for telling a newspaper the lawyer "should be smashed up".
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@Usman786: Yes, you are so right. Its about time that the true picture is revealed regarding alleged kickbacks in the Pakistani Arms Deal especially in the Sale of Submarines where it is said that a very High Profile figure is involved.
Lesson to be learnt by our CEC and NAB