Paris Saint-Germain reached an agreement with Inter on Friday to sign the Argentinian striker for €50 million, according to The Guardian's Fabrizio Romano.
Icardi, who has been a big success since joining on loan from Inter last summer, has signed a contract until 2024.
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Icardi scored 21 times in his first season at PSG and despite a late dip of form towards December, the forward will now earn €10 million annually in a four-year contract, the same wages given to Edinson Cavani who is expected to leave the club this summer.
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The Argentine striker has impressed during his loan spell with the Ligue 1 champions this season, scoring 20 goals in 31 appearances.
The signing brings closure to Icardi's soured relationship with Inter, with wife and agent Wanda Nara having initially caused controversy by calling out the club's players and management on television.
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Despite seeing their organization routine junked, Icardi as well as business can still locate themselves back on the pitch in the following couple of weeks, with concrete strategies in conclusion the Champions League, Coupe de France as well as Coupe de la Ligue yet to be revealed. The French club want to buy him and the Italian side have apparently approved the deal.