Milan have made an offer to Manchester City for the rebel forward but that is likely to be rejected by the English Premier League leaders, according to the report.
And La Repubblica claims the wealthy Arab owners of City and PSG are negotiating a deal for the 27-year-old.
Milan want to take Tevez on loan until the end of the season with an option to buy him then but City manager Roberto Mancini has said the Argentine will not be leaving on a temporary deal.
And while Milan are said to have offered around 23 million euros ($30.6m) for a permanent deal, PSG's offer is closer to 30 million euros, says La Repubblica.
The French team are also said to be able to match Tevez's huge salary at City, while he would have to take almost a 50 percent pay-cut to join Milan.
City are owned by the Abu Dhabi United Group, while PSG are owned by the Qatar Investment Authority, and La Repubblica claims there is a pact between the Sheikhs that will see Tevez swap Manchester for Paris rather than Milan.