Sports network beIN Sport had earlier claimed an agreement had been reached between the former France and Bordeaux coach and PSG, with Blanc to take over at the Parc des Princes on a two-year deal.
That seemed to pave the way for last season's title-winning coach Carlo Ancelotti to succeed Jose Mourinho at Real Madrid.
However, Blanc's agent Jean-Pierre Bernes told radio station RMC that nothing has as yet been finalised with negotiations still ongoing.
While Bernes expects Blanc to be installed at PSG, he said talks are not yet concluded and many details have yet to be ironed out - which contradicts much of the talk in the French media.
Reports had stated that Bernes had met with PSG president Nasser al-Khelaifi and sporting director Leonardo where the deal was agreed, with the former Marseille, Inter Milan and Manchester United defender expected to sign a contract early next week.
A short statement posted this afternoon on the website of beIN Sport, a network of sports channels jointly owned and operated by PSG owners Qatari Sports Investments, read: "An agreement was reached today between Paris St Germain and Laurent Blanc for him to become the new coach of the capital club.
"An agreement between the former coach of the France team and PSG was reached for two years. It is planned that he will sign the contract next week."
If and when Blanc is appointed, it would bring to an end long-time speculation about the identity of the next PSG coach with the likes of Mourinho, Rafael Benitez, Fabio Capello and Andre Villas-Boas - among others - linked with the job.
Blanc enjoyed a stellar playing career both domestically and internationally before being appointed Bordeaux boss in 2007.
He led Les Girondins to second place in Ligue 1 in his first season before going one better the following campaign as they were crowned champions as well as winning the Coupe de la Ligue.
Blanc was then confirmed as France coach in July 2010 ahead of the shambolic World Cup in South Africa, with Bordeaux receiving compensation from the French Football Federation.
He inherited a team that had been riven by in-fighting and divisions but managed to lead them to Euro 2012, where they reached the quarter-finals only to lose to Spain. Blanc stepped down after the tournament.