Paris Saint-Germain have announced the signing of Monaco forward Kylian Mbappe on a season-long loan with an option to buy next summer.

Real Madrid, Arsenal, Manchester United and Barcelona were all interested in the teenager this summer but PSG have won the race for his signature.

Mbappe is expected to complete a £162 million switch on a permanent deal next summer in what has been viewed as a controversial ploy to navigate the Financial Fair Play (FFP) regulations.

“It is with great joy and pride that I join the Paris Saint-Germain,” Mbappe told the club’s website.

“For any young person from the Paris region, it is often a dream to wear the red and blue jersey and to taste the unique atmosphere of the Parc des Princes.

“I was seduced by the project of the club, it is one of the most ambitious in Europe. Along with my new teammates, I intend to continue my progression today while helping the team to achieve the very big objectives it has set itself. ”

The 18-year-old scored 26 goals in 44 matches for Monaco last season, winning Ligue 1, and is one of the hottest prospects in Europe.