PSG have revealed that Nicolas Anelka will sign on Saturday before a high profile friendly with Brazilian club Corinthians, ending speculation over the transfer saga.
Anelka continues his tour of top European clubs with a return to Paris, where he grew up in one of the poorest suburbs and played before moving to Arsenal when he was only 17 in 1997.
The club released a statement saying that an agreement had been reached with the player and Real Madrid and he will sign a six-year contract before the match at the Parc des Princes.
French media have reported the deal as being around 220 million francs (£20.65 million) which would be a French record, but slightly less than Real paid Arsenal for him in 1999.
On his website Anelka confirmed that an agreement had been reached, saying: "I will return to PSG. Things went on a little, but discussions finally finished late on Friday."
"I'm very proud and very happy. The only thing that matters is that I'm returning home, to Paris. I'm returning to the fold. Friends, I'm delighted to be in Paris.
"I only stayed a season there (Madrid) .. one day I will go into everything but now is the time for rejoicing,"
Anelka's brother, Didier had called PSG's bluff on Thursday by claiming that the striker would return to Spain and start pre-season training with Real however this proved false and a return to his first professional club is now only a day away.
Having outstayed his welcome in England and now Spain it will be interesting to see how Anelka handles the problems and expectations of returning home to play. After being instrumental in the sacking of John Toshack from Real and refusing to train, Vicente Del Bosque said he thought the temperamental talent had to grow up.
I would have liken to give him another season but the guy was a real pain in the arse.
We almost lose nothing on the transfer fee and he was instrumental in the CL and the funds will go towards Figo transfer.