Gregan, 32, will earn his 115th cap when he runs out at the Stade Velodrome, eclipsing the record of 114 achieved by England prop Jason Leonard.
The scrum-half will be joined in the half-back pairing by Matt Giteau, who returns as fly-half after missing the last Tri-Nations match with a back injury.
He takes the number 10 shirt from Mat Rogers, who switches to the wing.
Another player back in the Wallabies line-up is winger Wendell Sailor, who has been absent for three matches with a knee injury.
Australia coach Eddie Jones has included uncapped 22-year-old prop Greg Holmes among the replacements.
Jones has been delighted with Australia's build-up to the game against France, which is the first Test of the Wallabies tour.
"The attitude and enthusiasm at training in the lead up to the tour, and especially this week has been pleasing," said Jones.
"There has been a really strong focus on preparing to play well against France on Saturday, and with a number of players coming back into the starting line-up everyone is keen to continue on from where the Australia A team left off on Tuesday by setting a good tone for the tour.
"The French are going to be physical, play with the ball off the ground and we've prepared for that. They are strong at the set-piece and we've already seen that they like to maul the ball as much as possible. We've got to be physical, out-muscle them and then use our skill."
Australia team to face France on November 5:
Chris Latham; Wendell Sailor, Lote Tuqiri, Morgan Turinui, Mat Rogers; Matt Giteau, George Gregan (captain); Matt Dunning, Brendan Cannon, Al Baxter, Mark Chisholm, Nathan Sharpe, Rocky Elsom, Phil Waugh, George Smith.
Replacements: Stephen Moore, Greg Holmes, Hugh McMeniman, John Roe, Chris Whitaker, Lloyd Johansson, Drew Mitchell.