Dembele did brilliantly to create the opportunity for a shot that was saved by Heaton but Monaco full-back Sidibe converted the rebound.
Ousmane Dembele gave 10-man France the victory (78), finding the bottom corner from 15 yards as England ended the season on a sour note.
The use of the video assistant referee was the centre of serious debate after Varane was sent off for bringing down Alli before Kane scored England's penalty.
Don't Look Back In Anger was sung in honour of the victims of recent terror attacks in Manchester and London at England's global friendly against France in Paris.
But they were unable to hold on as the the impressive Kylian Mbappe laid the ball on for the equally-brilliant Ousmane Dembele to drill home the victor 12 minutes from time.
"The best way to manage the game is to keep possession of the ball, make the opposition run, make sure we would be able to press because we've got a man extra".
This, however, was an uncomfortable night for a player Southgate will be counting on in the future.
England's last three friendlies have been against top-class opposition, drawing with Spain and losing narrowly to Germany and France.
Despite being a man down, France continued to push for a third goal but England goalkeeper Jack Butland did well to deny Kylian Mbappe in the 65th minute.
For all of England's shortcomings, France were hugely impressive on Tuesday and punters may see their performance as encouragement to use their free bet to back Les Bleus to go all the way in Russian Federation.
Although qualification for the 2018 World Cup is nearly given, the recent defeats have thrown some questions top ponder for Southgate which need to be resolved before England head to Russian Federation for worldwide football's showpiece event next year.
"We need to see the reality of where we are and you have to play against the best otherwise it masks where you are as a team".
"It was complicated by the sending off and the penalty", the French coach said.
48' - GOAL! France 2-2 England (Kane pen) Clever from Kane - Lloris dives right, he smacks into the middle- unusually for him, but he knows Lloris knows him - and suddenly, England are strong favourites!