David Beckham is in discussions with the Los Angeles Galaxy over a two-year contract extension that could be signed within the next few days, Press Association Sport understands.
Paris Saint-Germain confirmed today that Beckham will not be moving to the French capital despite weeks of speculation that the former England captain was set to tie up a move to Ligue 1.
Beckham is understood to have been put off by the idea of uprooting his family from the United States and is now in negotiations over a two-year extension with the Galaxy, who he joined in 2007.
Beckham has long been linked with a move back to Europe after it became clear that he wanted to move closer to England in order to boost his chances of making the Great Britain Olympic team.
It is understood that he has received assurances that he will be seriously considered for selection even if he remains in the MLS, however.
Between 15 and 20 clubs from across the globe have expressed an interest in signing the former Manchester United midfielder, including clubs from Asia, South America and the Barclays Premier League.
The 36-year-old enjoyed his best season in the MLS last year, with the Galaxy beating Houston Dynamo in November to win the MLS Cup, and that is thought to be one of the major factors which has persuaded him to want to stay in the States.
It is also understood that Beckham has been encouraged by the Galaxy's recent signing of former Tottenham striker Robbie Keane.
It is thought the deal the Galaxy have offered Beckham is similar to the previous contract he signed, with part of his basic wage being boosted by any increase in revenue that comes from merchandise sales.
PSG, who have substantial funds at their disposal after being taken over by Qatari Sports Investments in May, could not hide their disappointment at seeing a deal for arguably the most famous footballer on the planet fall through.
"It's over," the club's sporting director Leonardo was quoted as saying on www.lequipe.fr. "It's a shame.
"But the welfare of his family in Los Angeles, the wish not to change everything in his life, weighed heavily."
Beckham came through the ranks and enjoyed a glittering career at Manchester United before joining Real Madrid in 2003.
He won one Primera Division title and then joined the Galaxy on a bumper pay deal that saw him become easily the highest paid player in the country.
Beckham spent two winters on loan at AC Milan during his original five-year deal at the Galaxy, which expired last week, and has also had training spells at Arsenal and Tottenham during the MLS off season.