The V150 train with a reconfigured engine beat the previous world record of 515.3 kilometers per hour (320.2 miles per hour), which had been set by its predecessor in 1990.
TGV builder Alstom Transports and the state-run rail company SNCF said the 30 million euro project was aimed at boosting customer interest in France's high-speed technology.
"It is important for us to show that the TGV technology, developed by SNCF 30 years ago, is a technology of the future," CEO Guillaume Pepy said.
Germany's ICE trains and Japan's Shinkansen - the TGV's main competitors - develop a maximum speed of 430 kilometers per hour (267 miles per hour) and 400 kilometers per hour (249 miles per hour), respectively.
Japan's non-conventional magnetically levitated Maglev train can accelerate to 581 kilometers per hour (361 miles per hour).
