Along with Pyeongchang and Munich, the French bid will be on the ballot paper for next year's host city election at the IOC session in Durban, following an announcement at the conclusion of today's IOC executive board meeting in Lausanne.
But they will be considered rank outsiders for the race after being told by IOC director Gilbert Felli to make technical changes to their campaign, ahead of the presentation of a detailed bid book early next year.
"We decided that the cities of Munich and Pyeongchang should be retained without reservation," said Felli. "For Annecy, it will be retained but we are asking that the concept of its sports sites be reviewed."
However, bid leader Edgar Grospiron is determined to turn any negative into a positive - citing the cases of previous successful host city candidates who also picked up similar warnings.
"We have one year to convince," he said. "We are more determined than ever to do everything possible to offer exceptional Games, in the heart of the mountains, serving the Olympic ideal.
"Therefore, we are working on readjusting our project, as suggested by the IOC. Thanks to the great potential of our region, first winter sports destination in the world, we have the possibility to rapidly offer a solution which will come closer to the IOC's desires.
"We thank the IOC for studying our applicant file and are conscious of the high level of their expectations."
Pyeongchang unsuccessfully bid for the 2010 and 2014 Olympics and is considered a front-runner, with Europe staging the next edition of the winter Games in Sochi, while Munich is bidding to become the first city to stage the summer and winter Games.