A coupled variational equation for fluid-structure interaction (FSI) problems is derived from a steady state Navier-Stokes equation for incompressible Newtonian fluid and an equilibrium equation for geometrically nonlinear structures. For a fully coupled FSI formulation, between fluid and structures, a traction continuity condition is considered at interfaces where a no-slip condition is imposed. Under total Lagrange formulation in the structural domain, finite rotations are well described by using the second Piola-Kirchhoff stress and Green-Lagrange strain tensors. An adjoint shape design sensitivity analysis (DSA) method based on material derivative approach is applied to the FSI problem to develop a shape design optimization method. Demonstrating some numerical examples, the accuracy and efficiency of the developed DSA method is verified in comparison with finite difference sensitivity. Also, for the FSI problems, a shape design optimization is performed to obtain a maximal stiffness structure satisfying an allowable volume constraint.