The ban followed a decision hours before by a court in Nantes which overturned the ban with the judge saying that he did not regard the show, entitled The Wall, as having "an attack on human dignity as its main object".
But French Interior Minister Manuel Valls urgently appealed to the Council of State against the decision to lift the ban.
Dieudonne’s performances have been denounced as anti-Semitic and his latest show is said to contain a string of derogatory references to Jews.
More than 5,000 people were due to see the show in Nantes, the first of several performances around France.
Police have deployed outside the venue, the Zenith hall, as a precaution.
On his Facebook page, Dieudonne appealed to those gathered outside the hall to return peacefully to their homes, saying he had been denied permission to address them.
He said that on Friday he would post a new video on his YouTube channel.
Manuel Valls called the Council of State decision ‘’ a victory of the Republic.’’
Written by Joseph Byron