PSG are willing to sell Kylian Mbappe to Real Madrid for a fee of £180m, according to reports.
Mbappe has told the Ligue 1 giants that he will not be signing a new contract at the club.
That means the forward will be a free agent in 2022, a situation Madrid are trying to take advantage of.
They submitted a bid of £160m on Tuesday but this was almost immediately rejected by PSG.
Leonardo, the club's sporting director, subsequently criticised Madrid's conduct in recent months.
“Kylian Mbappe wants to leave, it seems clear to me," he told RMC Sport.
“If Real Madrid make an offer, it seems clear to me… if he wants to leave, we won’t hold him back, but it’s on our terms.
“Real Madrid have been behaving like this for two years, it’s incorrect, illegal even, because they contacted the player. It is unacceptable to us, because it is not correct."
PSG are now in a difficult position, having long believed they would eventually convince Mbappe to sign a new deal.
That is now looking extremely unlikely and the club must decide whether to sell him this summer, or risk losing a player who has been widely tipped as a potential Ballon d'Or winner for nothing in 2022.
According to the Daily Telegraph, PSG have decided they would be willing to cash in on Mbappe for £180m.
That is a gargantuan fee for a soon-to-be free agent but PSG are taking into account a sell-on clause that will be owed to Mbappe's former club, Monaco.
The ball is now in Madrid's court. It may ultimately come down to how confident the Spanish side are that Mbappe wants to move to the Estadio Santiago Bernabeu.
Madrid would face competition for his signature next summer, but they may be willing to wait if they are certain that the Frenchman will choose them.