The Champions League winning coach only signed a new contract with the Los Blancos last week and PSG is keen to bring him back to France where he started his professional career as a footballer, according to Diario Gol.
The PSG hierarchy is willing to make Zidane the highest paid coach in the game if he accepts their offer to switch to the French capital.
PSG president Nasser Al Khelaifi is willing to offer Zidane €25m-a-year, which would make him the highest paid coach in the world.
Al Khelaifi believes coach Unai Emery lacks the authority to handle the current locker room and believes Zidane would be a better manager of their star-studded squad.
Real Madrid president Florentino Perez is sure to fight PSG to keep hold of Zidane, who has brought historic success to the club over the past two seasons by winning a back-to-back Champions League.