Arsenal have been touted as potential suitors for the talented Frenchman, with Serie A giants AC Milan and Roma also reportedly interested.
The versatile 19-year-old, who has come through the ranks with PSG, has already turned down a new deal, and Blanc is aware that, with just 12 months left on the current contract, Rabiot could be on his way.
"We appreciate the boy. He has a great opportunity at PSG and I believe he has the qualities to play here," Blanc told L'Equipe.
"But his entourage doesn’t agree and takes advantage of his contractual situation.
"I know he had a very good offer from PSG. But he doesn’t seem attracted."