They reportedly went in after French tanks advanced on the compound in Ivory Coast's main city, Abidjan, following French and UN helicopter attacks.
Mr Gbagbo is refusing to cede power to Alassane Ouattara, certified as the winner of the presidential election.
UN peacekeepers accuse Gbabgo forces of endangering the civilian population.
"Gbagbo has been arrested by French special forces in his residence and has been handed over to the rebel leaders," presidential spokesman Toussaint Alain told Reuters news agency from Paris.
News of the arrest was later confirmed by the French ambassador to Cote D[voir
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