Alstom said the programme would concern as many as 91.5 million shares or 29.5 percent of its shareholder capital, at 35 euros a share.
Shares in Alstom closed up 4.12 percent at 30.99 euros before the announcement was made.
The company said the buy-back would be submitted for approval at a shareholder meeting on Dec.18.
French industrial conglomerate Bouygues would take part in the share buy-back programme and keep its stake unchanged at 29.2 percent, Alstom said.
Alstom completed a 12.35 billion euro sale of its energy business to U.S. General Electric on Monday, helping it refocus on its transport business.
(Reporting by Astrid Wendlandt; Editing by Matthias Blamont)