The 29-year-old Ogier started the race with an 83-point championship lead over second-placed Neuville and can no longer be caught by the Belgian.
Neuville had to collect the maximum 84 points from the three remaining races and power stages of each rally but finished second behind Spaniard Dani Sordo in Strasbourg.
"Now, I will be able to be aggressive all the weekend because our goal has been reached," Ogier told French broadcaster Sport+.
"It has been an ideal season for all this team. Last year, we started from scratch and now, for our first season, we're world champion," added Ogier, who joined Volkswagen in 2012 and spent his whole first season developing his car.
"We now will focus on the rest of the weekend. What's important for (the team) is the team title. I will do everything I can to get them points."
Volkswagen top the manufacturers' standings with 299 points, 48 ahead of defending champions Citroen.
Ogier finished third in the power stage on Thursday, 0.1 seconds behind Neuville and 0.8 behind Spaniard Dani Sordo.
"Before the stage, I was a bit confused about whether it would happen, but we're here and we managed to do it!," he told WRC website.
He takes over the world crown from fellow Frenchman and record nine-times champion Sebastien Loeb.
"He deserves it, he has done a great season," said Loeb, who is racing in his fourth rally of the season and the last of his career in front of his home crowd.
Ogier, who enjoyed some outstanding performances with a Junior category car in 2009, made his debut at Citroen World Team three years ago and was quickly regarded as Loeb's main competitor.
The two were eventually paired at Citroen in 2011 and their rivalry took a bitter turn with the outspoken and proud Ogier refusing to behave as number two in the team.
Ogier finished third in the standings that year, although he won as many races as champion Loeb who remained Citroen's first choice when the French constructor settled the dispute by parting ways with one of them.
It forced Ogier to make a fresh start at Volkswagen and the Frenchman was quickly tipped as the season's favourite when Loeb announced he would not compete in all the races.
Ogier met expectations with an all but perfect year, winning six out of the first 10 races and finishing second behind Loeb but ahead of all other contenders in Monte Carlo and Argentina.
The Rally of France is the third last race of the season, with only Spain and Britain remaining.