LaLiga are considering taking legal action against Paris Saint-Germain over their renewal of Kylian Mbappe's contract, sources have told ESPN, after the forward decided to snub a move to Real Madrid and stay in France.

ESPN reported on Saturday that Mbappe has informed Madrid president Florentino Perez, as well as PSG manager Mauricio Pochettino and teammates, that he would not be leaving Paris.

The forward, who had been widely expected to join Madrid when his existing deal expires on June 30, is now set to sign a new three-year contract with PSG.

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Mbappe chooses PSG, will sign three-year extension

Sources have told ESPN that LaLiga are studying whether to report PSG for what they believe to be a breach of UEFA's Financial Fair Play rules, with a decision likely when Mbappe's new deal is made official.

On Saturday, LaLiga president Javier Tebas called PSG's renewal of Mbappe "an insult to football."