The 21-year-old Portugal international spent last season on loan at the Mestalla and the Spanish club is keen to make the deal permanent.
Five goals in 33 La Liga appearances forged a strong bond with the club and supporters, with Marcelino determined that Los Che owner Peter Lim should make every effort to sign the midfielder.
Initial attempts to strike a deal by Lim were rebuffed during the recent International Champions Cup in the billionaire’s native Singapore. Talks stumbled but contact, according to ESPN, was maintained between the two clubs.
Guedes agent Jorge Mendes dogged determination kept the deal alive when it seemed the two clubs would fail to reach an agreement.
PSG demanded a €60m fee with Valencia unwilling to spend beyond €45m on the player. To ease the situation, a 20% sell-on clause will be inserted into the contract.
Guedes is expected in the Spanish port city next week to tie-up personal terms with a view to completing the deal before the La Liga season commences
It’s expected the money from the sale will fund the French champions move for Jerome Boateng of Bayern Munich. PSG are also looking for a left-back but are conscious that FFP is styming them at the top end of the transfer market.