The Argentine was seen as a potential replacement for Cesc Fabregas
Paris Saint-Germain are set to beat Chelsea to Leandro Paredes in a deal with €;40million (£34.9million), according to the Telegraph.
The 24-year-old midfielder was in Paris on Wednesday ahead of the deal, which will give PSG a vital midfield piece heading into the Champions League knockout stages.
Chelsea, meanwhile, miss out on a replacement for Cesc Fabregas, who departed for Monaco earlier this month.