The Rossoneri chief has seemingly admitted defeat as the club cannot say no to the French club's offer as they attempt to balance their books
Italian sources claim that Milan vice-president Adriano Galliani is currently in the French capital conducting negotiations with PSG, who are readying a mega bid for the Brazilian defender.
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"Our financial situation is bad, there is nothing I can do about Thiago," he is quoted by La Stampa as saying.
"I have been offered €46 million."
The 27-year-old, who joined Milan from Fluminense in 2009 in a €10m deal, made 36 competitive appearances this season.