The France international briefly became a free agent at the end of the 2021-22 season after running down his deal with Barcelona, who unsuccessfully tried to force him out of the door two Januarys ago.
However, Dembele had reignited his career under Xavi during the second half of that campaign, and an agreement was struck for the attacker to continue at Camp Nou for another two years.
The 26-year-old ended the 2022-23 campaign with a respectable eight goals and nine assists from 35 games in all tournaments, but he has now entered the final 12 months of his recent renewal.
With their financial situation no longer as problematic as it used to be, Barcelona have been expected to tie the former Borussia Dortmund and Rennes man down to longer terms, and Dembele recently revealed that the club were hoping to agree a new deal until 2027.
For the time being, though, Dembele could depart for nothing at the end of the 2023-24 season, and his current contract allegedly includes a modest €50m (£42.9m) release clause, which will increase to €100m (£85.7m) on Monday.
According to ESPN, PSG are planning to trigger that option to prise Dembele away from Barcelona, and the attacker has already given the green light to a five-year deal with the French champions.
PSG were originally tipped to bring Dembele to the Parc des Princes in 2022, and Luis Enrique's side will seemingly get their man after keeping tabs on his performances for some time.
The report adds that Barcelona have now put a contract extension on the table, but PSG believe that their sporting project will be more appealing to the France international, whose agent Moussa Sissoko has enjoyed positive contacts with Parisiens football advisor Luis Campos.
While Xavi is keen to keep Dembele at the club, the Barca boss would welcome the transfer fee that his sale would bring as the La Liga champions aim to fund their own summer business.
Dembele will ostensibly bring an end to an injury-hit six-year stay in Catalonia after amassing 40 goals and 43 assists in 185 games for Barcelona since his €135m (£115.7m) move from Dortmund in 2017.
The winger won his third La Liga title with La Blaugrana last season, while he has also collected two Copa del Reys and two Supercopa de Espana titles at Camp Nou.
If all goes to plan, Dembele would become PSG's seventh signing of the summer after Milan Skriniar, Lucas Hernandez, Manuel Ugarte, Marco Asensio, Lee Kang-in and Cher Ndour.
New Parisiens head coach Enrique has already reinforced his attack after Lionel Messi's move to Inter Miami, while Kylian Mbappe's future is yet to be resolved after he told the club that he would not extend his contract beyond 2024.
PSG supposedly accepted a world-record €300m (£257.1m) bid from Al-Hilal for Mbappe, but the 24-year-old refused to enter talks with the Saudi Arabian side and is expected to join Real Madrid on a free transfer in 2024.