The France international's future has been the subject of much speculation over the last 12 months, with Real Madrid long seen as the favourites to sign him on a free transfer at the end of June.
Mbappe will allegedly announce the decision on his future on Sunday, with the World Cup winner expected to confirm his next move on the show Telefoot.
Real Madrid were thought to be certain that the 23-year-old would be joining the club this summer, but according to Italian journalist Gianluca Di Marzio, the attacker is now close to signing a new deal in Paris.
Meanwhile, El Chiringuito's Edu Aguirre has claimed that Mbappe will have the power to change managers and direct the transfer policy at the club.
The proposed deal could earn the Frenchman £4m a month in wages, in addition to a £100m signing-on bonus, with PSG prepared to break the bank to keep hold of their star player.
Mbappe has again been in excellent form for Mauricio Pochettino's side during the 2021-22 campaign, scoring 36 goals and registering 26 assists in 45 appearances in all competitions.
The Frenchman has netted 168 goals and registered 87 assists in 216 outings for PSG since making the move from Monaco, and it had been thought that Saturday's clash with Metz could be his final appearance for the capital giants.
However, Mbappe could now announce on Sunday that he is signing a new deal in the French capital, leaving Real Madrid needing to look elsewhere to boost their attack for next season.
The forward's mother Fayza Lamari has told Kora Plus: "We have an agreement with both Real Madrid and Paris Saint-Germain. Kylian will now decide. The two offers from PSG and Real Madrid are almost identical. It's up to Kylian now, he will make a decision."
Meanwhile, PSG boss Pochettino has said that he is unaware of the decision that has been made by the player.
"I don't know Mbappe's decision. It's a personal matter for Kylian with the club. There are a lot of reports and rumours. While respecting Kylian, whose contract ends this season, it's up to the club and the player to deal with these issues," said the club's head coach.
"I'm not the right person to make a comment that concerns these two parties, especially not about the player."
Mbappe has also been linked with the likes of Barcelona and Liverpool over the last few months, but the former Monaco youngster will either sign a new deal in Paris or move to Real Madrid on a free transfer at the end of June. body check tags ::