It has been reported in the French press that the former France and Bordeaux coach has agreed a two-year contract at the Parc des Princes, with Ancelotti strongly tipped to succeed Jose Mourinho at Real Madrid.

Although the deal has not yet been finalised, a statement on the club's Qatari owners' website on Friday read: "An agreement was reached today between Paris St Germain and Laurent Blanc for him to become the new coach of the capital club.

"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."

Blanc stepped down from his role coaching the French international team after their quarter-final exit at the Euros in 2012.

The announcement that Blanc is poised to take charge brings an end to a thorough search that has seen Russia manager Fabio Capello, Tottenham boss Andre Villas-Boas and Anzhi Makhachkala's Guus Hiddink all touted as possible candidates for the job.

Blanc's track record in France is impressive after guiding Bordeaux to the league title in 2009. That success paved the way for him to be named as France national team manager, but he resigned from the role after a quarter-final defeat to Spain at UEFA Euro 2012.

The 47-year-old had a distinguished playing career, appearing for Barcelona, Inter and Manchester United, as well as amassing 97 caps for France.