France forward Kylian Mbappe has agreed in principle to stay at Paris St-Germain.

Mbappe will sign a lucrative new three-year contract with PSG.

The deal is still to be signed but PSG are likely to make an announcement around their final game of the season with Metz on Saturday evening.

According to Spanish football expert Guillem Balague, writing last month, PSG were prepared to offer him a 150m euro signing-on fee to keep him for another two seasons.

Mbappe had agreed a financial package with Real months ago for a potential switch to Spain, but has decided not to join Carlo Ancelotti’s side.

He initially joined PSG on a season-long loan from Monaco in August 2017 and has helped them win four Ligue 1 titles in five seasons.

The Qatari-owned side were desperate to keep him and were prepared to offer the player a £21m net annual salary.

Mbappe scored in each leg against Real in the Champions League last 16 this season, but it was not enough to prevent PSG from going out 3-2 on aggregate.

He is Ligue 1’s leading scorer with 25 goals and provided a further 17 assists in 34 games as PSG won the domestic title with four games to spare.

PSG boss Mauricio Pochettino said on Friday he had no idea where Mbappe would play his club football next season.

“I hope Kylian is still here for many years to come but I also can’t lie. I don’t know what is going to happen,” said the former Tottenham boss.

“There are lots of rumours going around but the player is the one who will have to talk about this.”

‘An insult to football’

Javier Tebas, president of Spain’s La Liga, has been a staunch opponent of big-spending European clubs such as PSG and Manchester City, as well as the proposed European Super League.

In a post on social media, he said: “What PSG is going to do by renewing Mbappe with large amounts of money after losing 700m euros in recent seasons and having more than 600m euros in wages, is an INSULT to football.”

According to a report published earlier this month by a supervisory body of the Ligue de Football Professionel (LFP), the governing body of the French professional leagues, PSG made a loss of 224.3m euros during the 2020-21 season.

That came after a loss of 124.2m euros in 2019-20, when the Ligue 1 season was cut short in March 2020 because of the Covid-19 pandemic.

Tebas also added PSG president Nasser Al-Khelaifi “is as dangerous as the Super League”.

Real Madrid and Barcelona were among 12 leading European clubs that signed up for a breakaway competition last April, but the proposal collapsed within days following a backlash from players and fans, as well as governments and football’s governing bodies. PSG and Bayern Munich opposed the controversial plans.