Kylian Mbappe has reportedly told Paris Saint-Germain he will leave the club at the end of this season when his contract expires.

According to Sky Sport,  Mbappe communicated his decision to Nasser Al-Khelaifi, the PSG president, on Tuesday and the club expects him to join Real Madrid.

The terms of the forward’s exit are yet to be finalised as the two parties negotiate whether Mbappe will leave for a fee or sacrifice his own earnings. PSG expect Mbappe to keep his word that he would never leave on a free transfer.

It is understood PSG and Mbappe will make an announcement once this is agreed in the coming months.

Real Madrid has long been chasing the 25-year-old forward, who would have to take a pay cut to join the Spanish side. The club will make him the highest-paid player in their history.

PSG turned down a €220m (£188m) offer for Mbappe from Real Madrid in August 2021. The forward then chose to sign a new three-year deal with PSG that expires this summer.

If Mbappe were to extend his deal by a further year, PSG would value him at €150m (£128m) in the upcoming transfer window. They accepted a €300m (£256m) from Saudi club Al Hilal last summer, which Mbappe turned down.

The departure of Mbappe, whose wages cost PSG €200m (£171m) per year, will free up funds for the club to replace their star player and it is understood there are already plans to make multiple signings this summer.