While the reports have not yet been confirmed, it appears that the former Bordeaux and France coach has agreed a two-year deal at the Parc des Princes - seemingly paving the way for last season's title-winning coach Carlo Ancelotti to succeed Jose Mourinho at Real Madrid.
A short statement posted on the website of beIN Sport, a network of sports channels jointly owned and operated by PSG owners Qatari Sports Investments, read: "An agreement was reached between Paris St-Germain and Laurent Blanc for him to become the new coach of the capital club."
It continued: "An agreement between the former coach of the France team and PSG was reached for two years. It is planned that he will sign the contract next week."
According to reports in France, Blanc's agent met with PSG president Nasser al-Khelaifi and sporting director Leonardo on Friday where the deal was agreed with the former Marseille, Inter Milan and Manchester United defender expected to sign a contract early next week.
Should it be true, it would bring to an end long-time speculation about the identity of the next PSG coach with the likes of Mourinho, Rafael Benitez, Fabio Capello and Andre Villas-Boas - among others - linked with the job.
The 47-year-old Blanc enjoyed a stellar playing career both domestically and internationally before being appointed Bordeaux boss in 2007.
He led Les Girondins to second place in Ligue 1 in his first season before going one better the following campaign as they were crowned champions as well as winning the Coupe de la Ligue.
Blanc was then confirmed as France coach in July 2010 ahead of the shambolic World Cup, with Bordeaux receiving compensation from the French Football Federation. Blanc succeeded Raymond Domenech after the tournament in South Africa, in which Les Bleus were eliminated at the group stages.
He inherited a team that had been riven by in-fighting and divisions but managed to lead them to Euro 2012 where they reached the quarter-finals only to lose to Spain with Blanc stepping down after the tournament.