Paris Saint-Germain have finally agreed to a deal to sign Kylian Mbappé from Monaco for a fee of €180 million (£166.4m).

The extraordinary transfer will see Mbappé sign for PSG on a season-long loan with an agreement that the club will make the deal permanent next summer. It is unprecedented.

The arrangement is to try and ensure that PSG comply with the demands of Uefa’s Financial Fair Play rules which they are already struggling to meet following the signing of Neymar for a world record fee of €222m.

It remains to be seen how Uefa – and Europe’s other big clubs – react to how the deal has been structured and whether it falls foul of the regulation not to “circumvent the objectives” of FFP.

Mbappé met up with the France national squad on Monday ahead of their forthcoming World Cup qualifiers following the agreement of the move with has been reluctantly accepted by Monaco.

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The French champions had hoped that the 18-year-old striker would sign a new contract and stay for one more season. But his refusal to agree a deal with them and his steadfast desire to leave and join PSG this summer has led to the sale. Monaco also accepted that they may not get anywhere near the same scale of fee for Mbappé next summer.

It is an incredible deal with one club agreeing to allow their most prized asset to go on loan to their main rivals but it was the only way, it appears, it could be done. There were talks over the possibility of Mbappé staying at Monaco for one more season and the going but PSG want him now.

They have beaten off competition from Real Madrid – who Monaco would have preferred to sell to – for the hottest young property in world football.

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PSG now have to try and sell some players before the transfer window closes on Thursday to raise cash to ensure they balance the books following the Neymar deal.

It may mean one of their big names being sacrificed with Ángel Di María the most likely departure although there is strong interest in Julian Draxler. They would prefer to keep Draxler but have to bring in more than €100m in total with a deal to sell Serge Aurier for €25m to Tottenham Hotspur still to go through.