The California-based architect has been commissioned by businessman Bernard Arnault, to create a new art gallery which could trump even his Guggenheim in Bilbao.
The £70 million glass museum, given the title 'The Louis Vuitton Foundation for Creation' will be built for the Jardin d'Acclimatation in the Bois de Boulogne.
Gehry said of his new creation: 'It's a cloud of glass - magical, ephemeral, all transparent.'
He continued: 'I wanted to create something that every time you approach, it shows a different character depending on the light and the time of day. I wanted to emulate what this word 'transparence' means.'
The building is yet to go in for planning permission, but it if given consent it will dramatically add to the number of already spectacular museums in Paris, such as the pyramid at the Louvre and the Pomipidou Centre.
Arnault boasts a personal fortune of £9.8 billion and is also the president of the luxury-goods group Louis Vuitton Moët Hennessy.
He is hoping work will start early next year on the project, which will house permanent and temporary exhibitions of both contemporary and classical art, with a view to opening in 2010.