Despite having impressed for the Catalan giants during the second half of the season, Dembele is yet to extend his stay at Camp Nou past the end of June.
While a renewal remains a high possibility, other interested clubs are becoming increasingly encouraged, and PSG have been in that bracket for a number of months.
However, according to Le Parisien, the French giants have opted to end their interest in the 25-year-old due to the imminent appointment of Luis Campos as the club's new sporting director.
The report claims that Campos does not want to sign a player with Dembele's injury history and whose commitment has sometimes been doubted during his time at Barcelona.
The alleged development may lead to Dembele now accepting Barcelona's offer, although a number of Premier League clubs are said to be monitoring the situation.