The 20-year-old is believed to be one of a number of potential targets identified by the French club's new sporting director Luis Campos.
According to Portuguese news outlet A Bola, Inacio has recently been approached by PSG, who are hoping to strike a deal with Sporting worth around €30m (£25.6m).
However, the Ligue 1 champions have been informed that Sporting are unwilling to let the defender leave the club unless his €45m (£38m) release clause is activated.
Inacio, who still has four years remaining on his contract, has also been linked with the likes of Barcelona and Manchester United this summer.
The Portugal Under-21 international has developed into a first-team regular at Sporting over the last 18 months and has made 70 appearances across all competitions, including seven in the Champions League last season.
Over in the Premier League, Fulham are reportedly still in talks with Arsenal over a potential deal for goalkeeper Bernd Leno.
The 30-year-old lost his place as the Gunners' number one to Aaron Ramsdale last season and made only eight appearances across all tournaments.
The nine-cap Germany international is now expected to leave the Emirates Stadium, following the arrival of American stopper Matt Turner, and Fulham are believed to be leading the race for his signature.
Sky Sports News reports that both Fulham and Arsenal remain in talks over a possible deal for Leno to move to Craven Cottage, although the two teams are yet to agree on a transfer fee.
Leno, who is currently with Mikel Arteta's squad on their pre-season tour of the USA, has entered the final 12 months of his contract in North London.
Meanwhile, Blackburn Rovers talisman Ben Brereton Diaz is reportedly attracting interest from a host of European clubs including La Liga outfit Sevilla.
The 23-year-old excelled in front of goal for the Championship club last season, scoring 22 goals in 37 league appearances.
Brereton Diaz's impressive form has allegedly alerted a number of clubs in England and abroad, with The Sun claiming that Sevilla, Real Betis, Valencia, Leeds United, Bournemouth and Everton are all keeping tabs on the striker.
Both Lyon and Eintracht Frankfurt have also expressed their interest in the Chile international, but the report adds that Sevilla have the edge in the race for his signature as they can offer him Champions League football next season, although they are only prepared to pay half of Blackburn's £20m asking price.
Blackburn triggered an extension to Brereton Diaz's contract earlier this summer, although he only has a year remaining on his new deal at Ewood Park.
Staying in the EFL, League One side Wycombe Wanderers have reportedly agreed a deal with Man United to sign goalkeeper Nathan Bishop on loan.
The 22-year-old spent the 2021-22 campaign on loan with League Two outfit Mansfield Town, where he kept 14 clean sheets in 46 league appearances.
According to Football Insider, Wycombe are set to sign Bishop on loan when he returns from United's pre-season tour of Australia.
The Chairboys are on the lookout for a new number one following the departure of David Stockdale to Sheffield Wednesday.
Bishop began his career with Southend United before moving to Old Trafford in 2017, but he is yet to make a senior appearances for the Red Devils.