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French magistrates ruled Thursday that authorities had acted legally in tapping ex-president Nicolas Sarkozy's phone as part of an investigation into allegations of influence peddling, in a potential blow to his hopes to run for president in 2017, Reuters reported.

Sarkozy allies had been confident the court would declare the taps inadmissible and clear the way for him to seek the conservatives' ticket for the 2017 ballot without that judicial cloud hanging over him.

But magistrates approved the measure as part of investigation of the funding of Sarkozy's successful 2007 election campaign.

Sarkozy compared the tapping last year to the mass surveillance of the Stasi secret police of former communist East Germany. He has denied any wrongdoing.

His lawyers said they would appeal against the decision, but that will not stop resumption of the investigation over allegations of corruption and influence peddling, a judicial source said.

The news came just three weeks before a key party congress and two days after the UMP leadership decided on a new name - "The Republicans."

Some party supporters said the magistrates' decision might be politically motivated.

"Nicolas Sarkozy has for a long time had a pack on his heels trying to make him stumble, but let's stress that he has never been convicted," party official Nadine Morano said on Twitter.

Sarkozy himself did not react to the court's decision but aides said he was "unfazed and determined."