However, Mr Hollande said France would only act under UN authorisation.
He was responding to a plea by Malian President Dioncounda Traore for help to counter a renewed rebel offensive.
Earlier, an emergency meeting of the UN Security Council called for the rapid deployment of an African-led international force to Mali.
The Malian army said yesterday that French troops, as well as soldiers from Nigeria and Senegal, were already in Mali. However, speaking at a press conference, the army official refused to give details of their activities.
BBC reported that Residents of the strategic central town of Mopti told the BBC they had seen French troops helping Malian forces prepare for a counter-offensive against the Islamists in nearby Konna.
France was previously believed to have about 100 elite troops in the region. It also has a military base in Chad.
Armed groups, some linked to al-Qaeda, took control of northern Mali in April 2012. They have sought to enforce an extreme interpretation of Islamic law.
Western nations are concerned that Malis north could become a base for terrorists to plan and launch international attacks.
France is signalling pretty unambiguously that it is prepared to step into the Malian conflict. President Hollande said any military action would take place within the framework of the UN, but officials at the Elysee have made clear that, in Frances view, existing UN resolutions already provide sufficient legal cover.
Media reports in Paris say a detachment of French troops is already on the ground at the airport in Mopti, about 70km (43 miles) south of the frontline. It is not clear what their role is - perhaps to assess the situation ahead of a possible intervention.
Sent from my BlackBerry wireless device from MTN
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