The 18-year-old striker has followed in the footsteps of Neymar by joining the Parc des Princes side, and signs from Monaco initially on a loan deal
Mbappe, 18, arrives initially on a season-long loan, but PSG have an all-but-certain option to buy him next summer on a deal lasting until 2022.
“I really wanted to be a part of the club’s project, which is one of the most ambitious in Europe,” said Mbappe.
The loan may allow PSG time to stay within financial fair play (FFP) regulations, which allow a club only a €30m deficit. Following their record Neymar purchase, PSG wanted to structure their deal for Mbappe so the financial impact of his arrival would not be taken into account this season.
The only way PSG will not be obliged to buy Mbappe next summer is if they are relegated from Ligue 1.
The teenager is regarded as one of the hottest properties in the game, having exploded into Monaco’s starting XI in the second half of last season by scoring 26 times in 44 matches.
“Among players of his age, he is without doubt the most promising in the world due to his immense technical, physical and mental qualities,” PSG president Nasser Al-Khelaifi said.
The forward started the French Super Cup defeat to PSG, and then Monaco’s first Ligue 1 game of the new campaign, but has since been an unused substitute or left out of the squad entirely.