The deal, which still needs to be formally ratified by the Paris St Germain Administrative Council and the Paris Council, also includes plans for a renovation of the stadium which has been operating in its current capacity since 1972.
"This agreement, which will take the form of a convention with a 30-year duration, will be put to the Paris Saint-Germain Administrative Council and the Paris Council in the coming days for official approval," read a statement on www.psg.fr.
"This agreement highlights Paris Saint-Germain's attachment to the club's history and roots, as well as the club's desire to have a football specific venue in the heart of the city.
"In order to offer fans a unique experience in this historic stadium, the club has committed to a very ambitious renovation program that will begin in the coming months.
"This modernisation of the venue will affect all areas of the Parc des Princes and ensure a first-class viewing experience for the ever-increasing number of supporters and excellent working conditions for, amongst others, the media."
The statement continued: "This agreement with the city of Paris is part of the club's ambition to become one of the biggest clubs in Europe and a world-renowned sporting brand, by drawing on the values and notoriety of Paris.
"We are delighted that our renovation plans will be a significant contribution to the organisation of Euro 2016 and will enable France and Paris to fulfil its commitments to UEFA.