"Carlo Ancelotti will not be the PSG coach next season. He met (club president Nasser al-Khelaifi) and (sporting director) Leonardo this afternoon in Paris for more than an hour," BeIN Sport, who have television rights for Ligue 1, said on their Twitter feed.
PSG were not immediately available for comment.
Ancelotti ducked questions about his future on Friday, saying he had not made his decision then.
Earlier this week, Al-Khelaifi told Reuters that he had turned down a Real Madrid move to hire Ancelotti.
"They (Real) came and I discussed it with them. He's got a contract with us for one more year...for me, he's here next year," Al-Khelaifi said on Monday.
Ancelotti, 53, won league titles with PSG, AC Milan and Chelsea, also taking the Italian club to the Champions League title in 2003 and 2007.
His contract at PSG was automatically renewed by one year until June next year when the club secured a Champions League spot for next season.