France forward Kylian Mbappe has told Paris St Germain he will leave the club at the end of the season.

The PA news agency understands the terms of his departure are yet to be fully agreed, and it is expected official confirmation once those details have been agreed will come in the months ahead.

However, the World Cup winner has communicated his intention to leave to the French club’s executives.

Mbappe’s current contract with PSG expires in the summer and since January 1 he has been able to hold pre-contract talks with other clubs.

The 25-year-old has been widely linked with a move to Real Madrid.

Mbappe’s departure is being seen by those within the club as the final step in moving away from the old ‘bling bling’ approach to marquee signings of individuals, following from the exits of the likes of Lionel Messi and Neymar.

PSG are seeking to remodel their squad and will use the money saved on Mbappe per year – which club sources put at 200 million euros (£171m) gross – on multiple new signings and renewing deals for young talents such as Warren Zaire-Emery, Xavi Simons and Bradley Barcola.

UEFA is currently phasing in financial sustainability regulations which require clubs involved in its competitions to ensure that squad costs do not exceed 70 per cent of revenue by 2025-26.

Last summer PSG received a world-record £259m bid from Al Hilal for Mbappe and gave the player permission to talk to the Saudi club.

However, it was reported Mbappe turned down the chance to even discuss a move to Al Hilal when delegates from the club came to Paris.

He was barred from training with PSG’s first-team group as part of a contract dispute but was reintegrated on August 13 after what were described as “positive and constructive talks”.