The 48-year-old guided PSG to their second successive French title after taking over as boss last year and was offered a one-year extension to his contract which was due to expire in June 2015, though he insisted that he would wait until the season was over before considering any offer.
The former French defender also guided his side to French League Cup glory as they beat Lyon 2-1 last month.
Blanc had been linked to the vacant manager’s position at Manchester United following the sacking of David Moyes, but has put pen to paper on a new deal in the French capital, with Netherlands boss Louis van Gaal widely tipped to take over at Old Trafford.
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