The agreement was struck at midnight, said the report, citing Palermo's president Maurizio Zamparini.
Pastore, 22, is one of the most coveted players in world football and his transfer to Parc des Princes would announce PSG's arrival as serious players on the European scene. He was also being tracked by Chelsea.
He played 35 matches for Palermo in Serie A last season, scoring 11 goals.
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