The deal for the Portuguese talent was struck on Wednesday afternoon.
The deal is reportedly worth €15million.
Sanches is now scheduled to have his medicals in Paris sometime soon.
Personal terms for the player has already been agreed a while back.
PSG Head Coach, Luis Campos, will now feel confident going into the season haven gotten his dream signing.
PSG finished last season as Ligue 1 Champions haven relinquished their title the year before.