UPDATE 1-French cabinet to study debt guarantee plan-source

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PARIS, Oct 12 (Reuters) - The French government will put forward a bill on Monday that will offer state guarantees to any domestic banks that need re-capitalisation during the financial crisis, parliamentary officials said on Sunday.

The cabinet will meet in special session on Monday to approve the bill, which would then pass for ratification to parliament during the week, the officials said.

"This will give state guarantees to a body whose goal will be to raise funds to help banks meet their refinancing needs," Gilles Carrez, a senior member of the National Assembly finance committee, told Reuters.

Prime Minister Francois Fillon announced last week that France would set up a legal body so the state could intervene to acquire stakes in banks that run into trouble.

It was not immediately clear if Monday's bill would create the legislative architecture for such a vehicle.

Carrez told Reuters the new body might be used to house government stakes in banks, but another senior parliamentarian, Philippe Marini, said he did not think this would be the case.

"In theory, it will not be a tool for financing state stakes," said senator Philippe Marini. He added that the state might issue government bonds as collateral for any bank refinancing deals.

France has said repeatedly that it would not let any French bank fail and has already rushed to help prop up struggling Franco-Benelux bank Dexia (DEXI.BR) (DEXI.PA).

French President Nicolas Sarkozy has called an emergency meeting later on Sunday for the leaders of all the euro zone countries, which is expected to approve concrete, transnational measures to help restore confidence in the banking sector.

Sarkozy told reporters he expected the Eurogroup would come up with an ambitious plan, adding that he would announce specific measures for the French banking sector on Monday. (Reporting by Emmanuel Jarry; Writing by Crispian Balmer; Editing by Greg Mahlich)