The Palais Galliera, which has already been hosting temporary exhibitions on major designers for the last four years, is to become a permanent museum, the city's mayor Anne Hidalgo has said.
New 5.7-million-euro ($6-million) galleries will be built under the colonnaded 19th-century pavilion with the help of the Chanel fashion house, she added.
They will open in 2019 and will be named after Chanel's founder, Gabrielle "Coco" Chanel.
The Paris Fashion Museum will also be open all year round and offer a journey through the history of fashion, from 18th-century costumes to the latest looks hot off the catwalk.
"Paris is proud to be able to open this exceptional space, proving once again that it is the home of fashion," Hidalgo added.
The museum is located in a wealthy district on the Right Bank of the River Seine opposite the Palais de Tokyo modern art museum, where many of the Paris fashion week catwalk shows are held.
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