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Mbappe was subject to immense interest from Los Blancos in the summer, but the Parisians were reluctant to part with the World Cup winner.
However, they will not be able to stop the mercurial 23-year-old from swapping the Parc des Princes for the Bernabeau, when his contract expires at the end of the current campaign.
And reports from German outlet Bild understand he will pocket an eye-watering €50million (£41m) per season at Real Madrid.
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He will become the second largest earner in football, with only Lionel Messi taking home more than the Frenchman per season.
Mbappe has entrenched himself as one of the finest players in world football ever since he joined the club from Monaco in a deal worth £165.7m.
He has once again been in electric form for Mauricio Pochettino’s side this season, hammering home 19 goals and contributing 18 assists in 28 appearances for PSG.
The French giants currently command a huge eleven point lead at the top of Ligue 1, and look destined to stroll towards another league title.
However, Mbappe’s future has been a constant source of speculation, ever since Real Madrid tried to sign him last summer.
Reports from the Guardian claimed Spanish giants reportedly offered PSG £171.7m to sign him on the summer transfer deadline day but were knocked back by the Parisians.
And PSG expressed their immense frustration at Real Madrid interest soon after they rejected their deals.
“For the last two years, Real Madrid have been behaving like this, it is not correct, illegal even because they contacted the player,” PSG sporting director Leonardo said in August.
“It is unacceptable for us, because it is not correct.
“It is proof of the strategy: an offer comes one year before the end of his contract and seven days before the end of the window.
“They want us to reject, to show to Kylian that they tried everything and to start negotiating for next year.”
PSG have tried to convince him to put pen to paper on a fresh deal this season and was hoping the prospect of playing with Lionel Messi would help convince him to turn down Real Madrid.
Unfortunately, it appears their efforts have been in vain, as Mbappe will likely depart the club when his contract expires next season.
However, Mbappe has already promised the club that he will do everything he can to win as many titles as possible in his final season.
“No, I’m not joining Real Madrid in January. In January it’s not happening,” he told CNN . “I’m with Paris Saint-Germain, I’m really happy and I will 100 per cent finish the season as PSG player.
“I’ll give everything to win with Paris all titles this year.”
The top 10 highest earners in world football per season
1. Lionel Messi – Paris Saint-Germain – approximately £50m (£960,00 a week)
2. Kylian Mbappe – (once Real Madrid move is secured) – £41m (£855,000 a week)
3. Neymar – Paris Saint-Germain – approximately £30m (£606,000 a week)
4. Luis Suarez – Atletico Madrid – approximately £27.6m (£575,000 a week)
5. Gareth Bale – Real Madrid – approximately £24m (£500,000 a week)
7. Kevin De Bruyne – Manchester City – approximately £20m (£385,000 a week)
8. David de Gea – Manchester United – approximately £18m (£375,000 a week)
9. Robert Lewandowski – Bayern Munich – £16.8m (£350,000 a week)
10. Raheem Sterling – Manchester City – £14.4m (£300,000 a week)
Based on basic salaries alone (endorsements and add-ons not included) – according to Radio Times
Source: DUK News