Libya has signed contracts worth €292 million with French companies for missiles and communications equipment.
French officials denied any deal to sell military equipment was in exchange for Libya's releasing six imprisoned medics last month.
A spokesman for French President Nicolas Sarkozy said no arms contract was signed during Mr Sarkozy's visit to Tripoli last week, the day after the release of the five Bulgarian nurses and a Palestinian doctor.
He said there was "no compensation of that sort by France" for the release of the medics, who had been imprisoned more than eight years for allegedly infecting Libyan children with the Aids virus.
Libya allowed the medics to leave for Bulgaria on July 24th on the French presidential plane in the company of French first lady Cecilia Sarkozy and a European Union official.
The French president flew to Libya a day later to normalise relations with the one-time rogue state, now looking to rejoin the international community and erase its profile as an official sponsor of terrorism.
Under a deal sealed by the medics' release, the European Union agreed to an aid package and the prospect of increased trade ties. The Europeans also said they would encourage contributions to a Libyan fund set up to compensate families of the infected children.
In 2003, Col Muammar Gadafy announced he was dismantling his nuclear weapons programme, and the US and Europe lifted sanctions. That same year, Libya accepted responsibility for the Lockerbie bombing, which killed 270 people, and agreed to pay restitution to the victims' families.
AP