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Sky Sports News understands Paris Saint-German are set to sign Mbappe on a season-long loan with the obligation to buy him for £166m next summer.
The deal is yet to be signed by the 18-year-old forward and Sky Sports News understands no other player is involved in the transfer.
Both clubs are yet to comment on the deal.
But having signed Neymar in a world-record £200m transfer from Barcelona earlier this month, PSG will only sign Mbappe's deal once they are fully satisfied it meets UEFA's Financial Fair Play requirements.
Mbappe has attracted interest from a host of top clubs including Real Madrid, Barcelona, Manchester City, Liverpool and Arsenal.
Monaco said last month there would be "no more departures" from the Ligue 1 champions after an exodus of top stars and further interest in Thomas Lemar, Djibril Sidibe and midfielder Fabinho.
They also denied they had received a then world record £161m offer from Real for Mbappe.
Mbappe scored 26 goals and added eight assists last season as Monaco were crowned champions and advanced to the last four of the Champions League.
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