According to ESPN, French Rugby Federation president Bernard Laporte was in Dubai on Saturday to sign a Memorandum of Understanding between the FFR and UAE Rugby Federation.
Laporte told Sport360 that he was looking forward to enhancing the relationship between the FFR and the UAERF.
"One of our objectives in signing this Memorandum of Understanding is to organise games with the French team here in the UAE in the next couple of years" Laporte said.
"We also plan to welcome coaches and referees from the UAE in France at the national centre of in Marcoussis in order to support them to increase their own level. Also welcome some players in France and national team of the UAE."
Qais Al Dhalai, Secretary General of the UAERF, said the unique test would be most likely hosted in Dubai.
"The match will most probably be in 2018 at The Sevens [Stadium], or it might be at one of the bigger stadiums in Abu Dhabi, or even Al Ain" he said.
"This would the first time in history that UAE has hosted a big game of XVs.
"Now that the MOU has been signed, we will communicate with the other union [to finalise details]."
The proposed test would be the first time the All Blacks or France - or any tier one international side - have played in the Middle East.
However, the UAE has hosted the opening leg of the World Sevens Series annually since 2008 in Dubai, proving its ability to host large-scale rugby events.
The match would not be the first time the All Blacks have played a traditional opposition at an unfamiliar, neutral venue.
Between 2008 and 2010, the All Blacks played three Bledisloe Cup fixtures against the Wallabies in Asia, with two tests being held in Hong Kong and one test hosted at the National Stadium in Tokyo.
Last year, the All Blacks played Ireland in Soldier Field in Chicago, where the Irish claimed a famous 40-29 victory, their first win in 111 years of playing the New Zealanders.
The last meeting between the All Blacks and France was during the Kiwi's northern hemisphere tour last November, with the men in black defeating the French 24-19 at the Stade de France.
The All Blacks will return to Paris at the end of this year, with a test against France scheduled on 11 November, while a mid-week clash on French soil is expected to be announced in the coming weeks between the world champions and a yet-to-be-determined French side.