Icardi arrived at the Parc des Princes in the summer on a temporary move that included a €70-million option to buy. Financial uncertainties due to the ongoing coronavirus pandemic propelled PSG to seek more inexpensive terms.
The 27-year-old bagged a dozen Ligue 1 goals in 20 appearances this year before the French season was canceled and PSG were awarded a seventh title in eight years.
Icardi spent six seasons with Inter, twice winning Capocannoniere honors in 2014-15 and 2017-18 for recording the most goals in Serie A.
He also ranks eighth on Inter's all-time scoring list, though he became surplus to requirements when Inter lured Romelu Lukaku to the Giuseppe Meazza to form a strike partnership with Lautaro Martinez.
Icardi's permanent terms at PSG all but cement Edinson Cavani's exit. The Uruguayan forward's terms with the club lapse June 30. He's been linked with Inter, Atletico Madrid, and Inter Miami.