The Uruguay international has been heavily linked with both PSG and Premier League side Chelsea and Blanc last week described him as "a player I love".
Today, the former Bordeaux boss went further and also added that he had no doubt Cavani and Zlatan Ibrahimovic, voted Ligue 1's player of the season after a superb first campaign in the French capital, were compatible in attack.
Blanc told L'Equipe: "If he was to join PSG, I would be happy.
"It would be a big sporting shot and a signal to potential opponents of PSG in France and Europe."
Regarding a partnership with Ibrahimovic, Blanc added: "I believe Cavani and Ibrahimovic are complementary."
Neither is the former France coach concerned about a possible exit by defender Thiago Silva who has been linked with a move to Barcelona.
"I think he will be in Paris next season and he has a great chance to be captain," Blanc said.