Renault will help develop two new Ford models to be produced in northern France. The first model is scheduled to roll out to showrooms in just over two years, according to the plan.
According to the agreement, the automakers will also evaluate the possibility of a joint venture on other car models.
Ford's market share in the European passenger car market has more than halved in ten years. The share is 3.3 percent so far this year, compared to 7.2 percent in 2015.
Ford has previously also signaled a retreat from Europe, including by reducing production in Cologne, Germany, and completely stopping production in Saarlouis, Germany.
