The Ligue 1 big spenders were in discussions over a move for the former Real Madrid playmaker before Arsenal secured his signature, although were not close to signing Juan Mata
The Gunners smashed their transfer record after securing a €47 million deal to sign the midfield playmaker from Real Madrid, with Ozil having hit the ground running after grabbing an assist on his debut against Sunderland on Saturday.
Ligue 1 champions PSG were also strongly linked with a move for Chelsea star Juan Mata, with speculation over the summer suggesting that Jose Mourinho was ready to offload the former Valencia man as he actively pursued Manchester United forward Wayne Rooney.
Blanc, however, insists that it was Ozil that the big-spending French club were negotiating for, and not Spain international Mata. He told RMC: "Both players would have been good.
"To my knowledge, the only negotiations that took place were over Ozil."
PSG are currently third in the Ligue 1 table with 11 points from a possible 15, while they got their Champions League campaign off to the perfect start with a 4-1 win over Olympiakos on Tuesday.