Kylian Mbappe signs three-year deal at PSG after rejecting Real Madrid

The Kylian Mbappe transfer saga came to a conclusion on Saturday amid confirmation the Paris Saint-Germain forward had snubbed a move to Real Madrid in favour of signing a three-year contract extension at the Ligue 1 club.

ESPN reported last year that PSG rejected a series of bids from Madrid for Mbappe, the last of which was up to €200 million, and the Spanish giants had been confident that they would finally land their long-desired target on a free transfer this summer, with his deal due to expire on June 30.

However, a last-ditch effort from PSG to persuade Mbappe to stay proved successful on Saturday, with the forward pledging his future to the Ligue 1 club until 2025.

"I would like to announce that I have chosen to extend my contract at Paris Saint-Germain, and of course I am delighted," Mbappe said in a statement.

"I am convinced that here I can continue to grow at a club that provides everything necessary to perform at the highest level. I am also delighted to continue to play in France, the country where I was born, where I have grown up and where I have made my name.

"I would like to thank the President, Nasser Al-Khelaifi, for his trust, his understanding and his patience. I would also like to thank all the fans of Paris Saint-Germain, both in France and around the world, for their support, especially in recent months. Together, side by side and ambitious, we will make magic in Paris."

Earlier on Saturday, sources told ESPN that Mbappe had personally contacted Madrid president Florentino Perez to inform him of his decision, as well as PSG manager Mauricio Pochettino and his teammates.

Sources said that PSG sporting director Leonardo could leave the club as a consequence of the deal, with Mbappe preferring former Monaco and Lille executive Luis Campos as a replacement, and Pochettino's future was also in doubt.

Just prior to the official confirmation of Mbappe's contract, LaLiga issued a statement announcing that if would be taking legal action against PSG over the deal.

"LaLiga will file a complaint against PSG before UEFA, the French administrative and fiscal authorities and European Union authorities to continue to defend the economic ecosystem of European football and its sustainability," the statement read.

"This type of agreement attacks the economic stability of European football, putting at risk hundreds of thousands of jobs and the integrity of the sport," it continued. "It is scandalous that a club like PSG ... can close such an agreement while those clubs that could afford the hiring of the player without seeing their wage bill compromised are left without being able to sign him. ... PSG is assuming an impossible investment, seeing that it has an unacceptable wage bill and large financial losses in prior seasons.

It is violating current UEFA and French economic control rules." Mbappe joined PSG from AS Monaco in 2017, with the club eventually paying a world-record fee for a teenager of €180m. He has gone on to score a total of 168 goals in five years at the club, making him their second-highest career scorer behind Edinson Cavani.