The French publication reports that an initial €35m fee was verbally agreed between PSG and the La Liga club at the end of last month, but this could rise to €40m (£35m) by the end of the season depending on the player’s performances.
Guedes is currently on loan at Valencia, and has quickly become an integral member of the first team, with five goals and seven assists in 22 games.
Arsenal, Manchester United, Real Madrid and Atletico Madrid have all been linked with signing the Portuguese international but Valencia are believed to be confident of completing a permanent transfer for the player in the summer.
PSG need the money from the deal to keep within UEFA’s Financial Fair Play rules, and it seems Guedes’s agent Jorge Mendes’s good relationship with both PSG and Valencia could stop other clubs from getting involved in the transfer.
French TV station Telefoot reported earlier this month that PSG would demand €70m (£62m) for the 21 year old but it seems a deal worth much less than that could be acceptable if L’Equipe are to be believed.