The Brazilian international looked to be heading to the French capital, with PSG agreeing a fee with his club AC Milan.
However, the 22-year-old turned down a move to the Ligue 1 leaders earlier this week.
"Pato? It is the decision of the player. We have to accept it and look forward. I believe it is over," he said.
"We were waiting for Milan and Manchester City to find an agreement for Tevez.
"We still want a striker to improve the team, but we have some time, the transfer market will only be over on January 31."
Pato joined the Rossoneri in 2007 from Internacional.