The young centre-back is expected to join the Premier League champions on a free transfer, following in the footsteps of former PSG youth player Mahamadou Sangare.
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PSG had attempted to secure Malonga on a first professional deal, but their efforts to keep him have reportedly failed.
Manchester City, who have closely monitored his development, are set to offer him a five-year contract.
A loan move away from the Etihad is also expected as part of his early development pathway.