The two nations hope the visit -- the first by an Israeli head of state since 1988 -- will bolster bilateral ties, despite persistent tensions in the Middle East and allegations of anti-Semitism in France.
Katzav, who was flown into the city centre by helicopter with military escort, invited his French counterpart during a joint news conference to visit the Jewish state.
"I received his invitation with pleasure," Chirac responded, without saying whether he intended to go.
The first evening of Katzav's visit was marked by a protest against Israel's separation barrier across the occupied West Bank, which police said was attended by 300 people and more than a dozen political parties and associations, including the Greens and the Human Rights' League.
Protestors unfurled banners demanding "Stop Israeli state terrorism" and chanted slogans such as "State of Israel, criminal state".
The legality of the barrier is to be examined next week by the International Court of Justice in the Hague. Israel is to boycott the hearings.
Chirac has already labelled the barrier illegal, adding his voice to international concerns that the forced separation of Israel from the Palestinian community in the West Bank will worsen the Middle East conflict.
Israel insists the wall is designed to keep out Palestinian suicide bombers but Palestinians argue it is a land grab and a form of apartheid.
Chirac on Monday reiterated his determination to fight anti-Semitism, a move to which Katzav responded with thanks on behalf of Israel, but also said France would not accept unfounded allegations to that effect.
"I repeated to the president my determination without fail to fight all forms of racism and anti-Semitism," Chirac told the news conference.
"We are, and we will be, uncompromising on this question," he said. "That is why we do not accept groundless accusations that are sometimes made against us and which are an attack on France's honour."
Allegations by Israel of increasing anti-Semitism in France had previously led to sharp exchanges, between the two countries, although there have been signs in the days leading up to Katzav's visit that both were trying to calm the rhetoric.
"The French government is the only government in Europe to really fight against... this phenomenon," the Israeli ambassador to Paris, Nissim Zvili, told Europe 1 radio on Monday morning.
Other Israeli officials had earlier contended that anti-Semitic incidents in France doubled last year, contradicting official French figures showing the opposite.
Chirac also said he supported Israel becoming a member of a global organisation of French-speaking countries because it had a large number of French-speaking citizens of Moroccan origin.
But he acknowledged that currently there was no possibility of avoiding some countries in the organisation vetoing against the move.
Katzav, who arrived at Orly airport south of Paris on Monday, held talks with Chirac at the French presidential palace.
Around the walled building, situated a short distance from the Champs-Elysees, which was avenue lined with Israeli flags for the occasion, police sharpshooters were stationed on rooftops surveying the streets.
During his stay, Katzav, who holds a largely ceremonial position, will also meet Prime Minister Jean-Pierre Raffarin, parliamentary leaders and the French finance and interior ministers, while his entourage of Israeli corporate chiefs will explore business opportunities.
Ambassador Zvili said Israeli Prime Minister Ariel Sharon (news - web sites) might follow up Katzav's visit to France with one of his own "towards April".
Chirac's spokeswoman, Catherine Colonna, said: "Up to now, the Israeli-Palestinian conflict and its repercussions have cast a shadow over bilateral relations between France and Israel. This state visit will mark a change in the relations between the two countries."
