The former champions announced the signing of the teenager on transfer deadline day.
PSG will sign him on a permanent basis at the end of the loan spell on the 30th of august 2018 in a deal believed to be worth £196m, ending months of speculation over his future.
Mbappe, 18, has been linked with all the top clubs in Europe all summer, but has only completed a move from Monaco to their Ligue 1 rivals on a day the European transfer window slams shut.
PSG would have completed the signing outright, but were constrained by Financial Fair Play (FFP) rules, after only signing Neymar from Barcelona for £200m weeks ago.
An extremely precocious talent, Kylian Mbappé has already played 60 matches with AS Monaco, scoring 27 goals and making 16 assists since his first team debut on December 2 2015 against SM Caen.
See press release below: