A French prosecutor on Friday said IMF chief Christine Lagarde should stand trial for her handling of a massive state payout to tycoon Bernard Tapie when she was France's finance minister.

The prosecutor recommended the rejection of a challenge by Lagarde to a December court order for her to stand trial for negligence in the affair, which saw Tapie receive 404 million euros ($433 million) in taxpayer money.

The ruling is expected on July 22.