The airline said the plane landed safely in the afternoon after being diverted to Goose Bay airport as a precaution.
The aircraft (F-HPJE), which was operating today's flight AF066 from Paris Charles de Gaulle, is understood to have been cruising at FL370 when major components of its No. 4 Engine Alliance GP7200 seperated.
Goose Bay is a base operated by the Royal Canadian Air Force but is also a designated standby airport for diverted transatlantic flights.More news: New UKIP leader is Henry Bolton from Kent
Photos showed damage to the outboard engine on the right wing.
The cause of the engine failure was not explained. Kate Heath took this clip of the plane coming in to land. Some portions of the engine's fan were missing.More news: Delta will allow text messages during a flight
The passengers are now in the care of airline staff.
The aircraft was flying at 37,000 feet and had just crossed Greenland when the engine failure happened.
According to a report, they were providing meals and captain spoke with passengers.
When the aircraft landed, the engine had lost its cowling and Goose Bay airport emergency services employees reported they had to remove debris from the runway.More news: Roku's stock rockets in its Nasdaq debut