Paris Saint-Germain are hoping to make a big step forward in negotiations with Lionel Messi over his new contract by the end of the month, sources have told ESPN.

Messi, 34, was linked with a shock move to Al Hilal on Thursday but is happy in Paris and won't be joining Cristiano Ronaldo in Saudi Arabia, according to sources.

- Stream on ESPN+: Spanish Supercopa, Carabao Cup, more (US)

The Argentina international's contract expires at the end of the season, but both parties have agreed in principle to continue Messi's stay in France.

Messi's father, Jorge, is expected to arrive in Paris before the end of the month to sit down with Luis Campos, PSG's sporting director, and Nasser Al-Khelaifi, the club's president, to finish negotiations and conclude the agreement.

The structure and length of the new contract have yet to be agreed upon, but both parties appear optimistic about finding a common ground.

- Hit or miss? Rating every €100m transfer after Felix joins Chelsea

Major League Soccer side Inter Miami are the other club trying to recruit Messi, with manager Phil Neville revealing that they are working "every second of every day to bring the best players" to the club.

However, Messi's priority at the moment is PSG and extending his deal with the Ligue 1 leaders.

The 2022 World Cup winner made a goal-scoring return with PSG on Wednesday in the 2-0 victory over Angers at the Parc des Princes in Ligue 1. He has now 13 goals in 19 games this season.