Th 47-year-old has signed a two-year deal to become Carlo Ancelotti's successor at Parc des Princes on the same day the Italian was named as Real Madrid's new trainer.
On the same day that former boss Carlo Ancelotti was named as Jose Mourinho's successor at Real Madrid, the Ligue 1 champion has agreed to a two-year deal with the 47-year-old.
"Paris Saint-Germain is delighted to announce the appointment of Laurent Blanc as coach for the next two years," an official club statement read. "He will take charge of the squad on July 1, 2013, for the start of preseason training."
The appointment signals the end to a saga at Parc des Princes, with Tottenham head coach Andre Villas-Boas and Russia manager Fabio Capello previously rejecting the role.
Former Barcelona manager Frank Rijkaard then voiced his lack of interest in the job before club president, Nasser al-Khelaifi, changed his sights to Blanc.
Following a highly successful 20-year playing career - which including World Cup and European Championship winner's medals - Blanc won a league and cup double in his second season in charge of Bordeaux.
A move to France followed 12 months later, guiding Les Bleus through Euro 2012 qualification and an eventual quarterfinal exit against Spain before stepping down from the role.