A lawyer for Sarkozy said the President may sue if the doll is not removed from stores as he holds the "exclusive and absolute rights" over his own image, reports the BBC.
Publishers K&B have issued 20,000 dolls, which are covered in quotes made by Sarkozy and come with pins and a manual of instructions.
A similar doll of his Socialist party rival in last year's elections, Segolene Royal, has also been produced. Her lawyer called the doll an affront to her human dignity.
The publisher branded Sarkozy's reaction "totally disproportionate".