Cairanne, in the Côtes du Rhône, has been awarded 'appelation communale' status by the Institut National des Appellations d'Origine.
The 2015 vintage will be the first eligible for sale as Cru status.
Cairanne is situated in the Rhône Valley, some 25 miles north of Avignon in Haut Vaucluse.
It applied for the status in 2008.
Cairanne primarily produced red wines, with 60% of the vineyards being planted with Grenache, 16% with Syrah, 15% with Carignan and 6% with Mourvèdre.
Over 400 hectares of Cairanne's vineyards hold vines that are over 50 years old, and some 60% are over 30 years old.
Around 5% of the appellation's wines are white, made from the Grenache, Clairette, Roussanne, Marsanne, Bourboulenc and Viognier varietals.
Denis Alary, president of the Syndicat des Vignerons de Cairanne, said: "For us, promotion to Cru status is an acknowledgement of the huge improvements we have made to the quality of both our white and red wines."
The Syndicat des Vignerons de Cairanne represents 37 winegrowers in private wineries as well as three co-operative wineries.
The Côtes du Rhône appellation is the second largest wine-producing area in France, and its wines have grown in value by 27% over the last decade.
The UK remains the largest export market for Côtes du Rhône wines, accounting for some 18% of the region's exports in 2014.
The region's exports for the year were worth around £57 million.