The Brazil international became one of Carlo Ancelotti's star performers in the 2021-22 season with 22 goals and 20 assists in 52 appearances across all competitions.
Vinicius's exploits helped Los Blancos secure a La Liga and Champions League double, and he also scored the winning goal against Liverpool in the European showpiece event.
The 21-year-old's existing deal at the Bernabeu only has two years left to run, but he recently revealed that he was "close" to signing an extension with the capital giants.
"Paris Saint-Germain interested in me? I want to stay at Real Madrid. I'm close to a contract renewal," Vinicius told reporters when questioned on links with the French champions.
The report adds that PSG were indeed hoping to prise the former Flamengo starlet away from the Bernabeu, and a mammoth €40m (£34.3m) yearly salary was reportedly offered to the youngster.
However, Vinicius's relationship with Real Madrid is said to be 'too strong' to be broken, in spite of the fact that he is currently one of the lowest-paid members of the squad.
A four-year extension until the summer of 2026 was originally said to have been on the table for Vinicius, but president Florentino Perez intervened to make it a five-year offer.
The 14-cap Brazil international is in line to earn €10m (£8.6m) per season under his new terms, and a release clause of €1bn (£860m) will also be included.
As well as the 2021-22 La Liga and Champions League crowns, Vinicius won the 2019-20 top-flight title with Real, in addition to the Club World Cup and two Supercopa de Espanas.
The attacker struggled to hit the ground running at the Bernabeu following his 2018 transfer, but he now boasts a total of 36 goals and 43 assists in 170 appearances for Los Blancos.
Neither Kylian Mbappe nor Erling Braut Haaland will be playing La Liga football next season, but Ancelotti's side managed to win the race to sign Monaco starlet Aurelien Tchouameni. body check tags ::