Paris, August: Qatar-owned Paris Saint-Germain have signed France striker Kylian Mbappe on loan from AS Monaco with an option to buy the player at the end of the season, PSG said on Thursday.

The France international is PSG's fourth signing of the window after Neymar and defenders Yuri Berchiche and Dani Alves.

"Paris Saint-Germain is delighted to announce the immediate arrival of Kylian Mbappe. The international French striker is transferred on a loan basis from AS Monaco until June 30 2018," the club said in a statement.

"The loan agreement also includes a call option for Paris Saint-Germain which, when exercised, will bind the player to Paris Saint-Germain until June 30, 2022."

Local media reported that PSG would pay 150 million euros ($178.44 million) for Mbappe, which would make him the world's second most expensive player after Brazil's Neymar joined PSG this month for a world-record 222 million euros from Barcelona.

Mbappe burst onto the world stage last season, scoring 26 goals and making 14 assists across all competitions for Monaco, helping the club win the French league title and reach the quarter-finals of the Champions League.

"I really wanted to be a part of the club's project, which is one of the most ambitious in Europe," Mbappe said on the PSG website.

The loan aspect of the deal is to allow PSG to comply with UEFA's Financial Fair Play rules, according to French media.

PSG President Nasser Al Khelaifi said: "It was essential for French football that we keep and help develop such a great talent in our championship.

"Among players of his age, he is without doubt the most promising in the world due to his immense technical, physical and mental qualities.

"Since his emergence at the highest level, he has earned an excellent reputation as a young talent who is very respectful, open, ambitious and already very mature," added the wealthy owner, who also heads the Qatar Tennis Federation.