PSG have accepted that Kylian Mbappe will not be signing a new contract with the club, according to reports.
The France international's current deal at the Parc des Princes runs until 30 June 2022.
PSG have been trying to tie him down to fresh terms for some time, but Mbappe has refused all their offers.
RMC Sport reports that the Ligue 1 giants tabled their latest proposal on Monday, a five-year deal with an option for a sixth season.
Mbappe did not take long to turn down that offer and PSG are now resigned to losing him.
That is a major blow to a club that has grown accustomed to signing superstar footballers from European rivals.
The shoe is now on the other foot and PSG will have to begin preparing for life after Mbappe.
The French side felt their signing of Lionel Messi earlier this month would help persuade Mbappe to extend his stay at the Parc des Princes.
But perhaps the arrival of another high-profile forward has actually convinced the France international that he should plot his own path elsewhere.
If PSG have indeed admitted defeat in their attempts to keep hold of Mbappe, they might be open to a sale before the current transfer window closes on August 31.
That would allow them to recoup some of the £166m they paid to sign him from Monaco on a permanent deal in 2018.
RMC report that Real Madrid have not yet made a bid but they could do so in the coming days.
Intriguingly, an unnamed Premier League club are said to have had an offer for Mbappe turned down by PSG.
It has long been assumed that Madrid are at the front of the queue to sign the World Cup winner, but the Spanish side could yet face competition from the likes of Chelsea, Liverpool, Manchester United or Manchester City.
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