The treaty followed the last battle in the French and Indian War in North America, the Battle of Signal Hill in September 1762, which confirmed British control of Canada. In Europe, the associated Seven Years' War continued to rage.
Having lost Canada, King Louis XV of France proposed to King Charles III of Spain that France should give Spain "the country known as Louisiana, as well as New Orleans and the island in which the city is situated." Louis proposed the cession on November 13 and Charles accepted on November 23, 1762.