Kylian Mbappe is set to turn his back on Real Madrid and stay at Paris Saint-Germain for another three years, AFP learned from a source close to the negotiations on Saturday.

PSG hope to make an official announcement by the end of the day that the 23-year-old forward is staying in the French capital, the source said.

The club are playing Metz in their final Ligue 1 match of the season at the Parc des Princes later Saturday.

If Mbappe's decision to stay in the French capital and reject Madrid's advances is confirmed, it will end months of speculation surrounding arguably the hottest property in world football.

World Cup winner Mbappe has made no secret of his desire to play one day for Real, who will face Liverpool in the Champions League final in Paris next weekend after securing a 35th Spanish title.

But PSG, who have won the Ligue 1 title for a record-equalling tenth time but angered their hardcore supporters with their limp exit to Real in the last 16 of the Champions League, have battled to hold on to their biggest asset.

Mbappe had reportedly agreed a deal with Real months ago for a potential switch to Spain which would have included a signing-on fee of 150 million euros ($158 million).

Kylian Mbappe has decided to extend his contract at Paris Saint-Germain and snub Real Madrid, according to a source close to the talks
Kylian Mbappe has decided to extend his contract at Paris Saint-Germain and snub Real Madrid, according to a source close to the talks AFP / FRANCK FIFE

The president of Spain's La Liga, Javier Tebas, complained bitterly on Saturday that the massive financial resources of PSG's Qatari owners had proved decisive in persuading Mbappe to stay in France.

"What PSG is doing by renewing Mbappe with large sums of money...after posting losses of 700 million euros in recent seasons and having a wage bill of over 600 million euros, is an INSULT to football," Tebas tweeted.

On Friday, Mbappe's mother Fayza Lamari told an Egyptian media outlet that her son had offers from both clubs and was still weighing up which one to accept.

"All the negotiations are finished. We have an agreement with Madrid and Paris. Now it is up to Kylian to choose," she told Kora Plus.

It now appears Mbappe will stay alongside Neymar and Lionel Messi to help the club in their protracted quest to land the Champions League, the title that has so far eluded them.

Mbappe joined PSG on a season-long loan from Monaco in August 2017 that turned into a permanent deal worth 180 million euros and has helped the club win four Ligue 1 titles in five seasons.

This season he has scored 25 league goals heading into Saturday's final game and is on course to finish as Ligue 1's leading scorer for a fourth consecutive season.

In the Champions League exit to Real this season, Mbappe scored in each leg of the tie, but could not prevent PSG from losing 3-2 on aggregate.

He will be a key figure when France attempt to defend the World Cup in November and December.