PSG have pulled plans of signing permanently on-loan Inter Milan striker Lautaro Martinez.
Icardi is currently on loan at PSG until the end of the season and the French champions did have an option to make the move permanent at the end of the season for €70m (£61m), says the Daily Star.
However, Italian transfer expert Nicolo Schira is reporting that Icardi and his wife and agent Wanda Nara have no intention of staying in France and PSG have pulled out of negotiations as a result.
The latest development in the transfer saga will interest a number of Premier League clubs who have been in for the Argentine striker in the past.
The likes of Chelsea and Manchester United have been linked with the 27-year-old in the past and are both likely to be in the market for attacking recruits in the summer.
Despite interest from the Premier League, Icardi and Nara are thought to prefer a return to Italy.