In honor of her film career, including two Oscars for her performances in films such as "Coming Home" and "Klute," the actress, producer and activist will be bestowed with the prestigious prize at an event to be held on Oct. 19.
"With a filmography as impressive as her roles, she is at once fragile, naive, strong, committed, a femme fatale, a mesmerising presence, as well as funny and irreverent," festival officials said in a statement on Monday.
"Jane Fonda is an international star, an icon spanning several decades of audiences, in a world that has drastically changed. She is a resolute woman, truly of her time."
Regarding the prize, the 80-year-old shared that she was "honored" and "over the moon."
Fonda will be presented with the award by festival director Thierry Fremaux. In addition, Susan Lacy's documentary, "Jane Fonda in Five Acts," will be screened during the film event, while organizers also plan to celebrate her family's legacy, with a special homage to her father, Henry Fonda.
Previous winners of the Lumiere Award include Catherine Deneuve, Martin Scorsese, Pedro Almodovar, Quentin Tarantino, Ken Loach, Gerard Depardieu and Clint Eastwood.