The young defender is on the verge of making the switch to the Parc des Princes despite recently agreeing to a contract extension at Schalke.
The 21-year old is set to join the Parisians for a fee of around €37million ($42m) despite agreeing to a new deal at the Veltins Arena this summer.
Schalke sporting director Christian Heidel confirmed the youngster’s departure in a press conference on Sunday.
In his statement, Heidel confirmed that the German international would have extended his stay at the Veltins Arena but for an irresistable offer from the French champions.
“Without an offer of the dimension that PSG has given us, Thilo would have certainly extended,” He said.
“The transfer will have an economic significance that Schalke 04 can not refuse.”
Paris Saint-Germain have been on the hunt for a central defender this summer and have been linked with Bayern defender Jerome Boateng.
Kehrer’s signing might mean an end to the pursuit of Boateng – who looks to be heading for an exit at the Allianz Arena and was previously linked with a move to Manchester United.
A youth product of Schalke 04, Kehrer made his first-team debut in February 2015 in a 3-0 win against VFL Wolfsburg.
The German youngster went on to break into the club’s first-team squad in the 2016-17 campaign and was instrumental to the club’s second-place finish in the Bundesliga last season.
The 21-year-old defender started 27 games in the German Bundesliga in 2017-18 as Domenico Tedesco’s side finished 21 points behind Bayern Munich.