The French champions finally confirmed a replacement for Ancelotti following the Italian's move to Real Madrid after weeks of tracking some of the most prominent figures in the European game.
PSG had been linked with Jose Mourinho, Andre Villas-Boas and Fabio Capello - among several others - with Blanc appearing to be well down the club's list of potential Ancelotti successors.
Wenger has also been touted for a move to the Parc des Princes and, according to The Mirror, PSG will return for the Arsenal boss next year when his contract expires at the end of next season.
Nasser al-Khelaifi is reported to have attempted to secure the services of Wenger two years ago, while he maintains a relationship with the Frenchman who works as a pundit for al-Jazeera Sport - a company run by the PSG president.
Wenger is PSG's ideal management appointment, although Arsenal remain confident the 63-year-old will extend his stay with the club before his current deal ends in 2014.
Arsenal chief executive Ivan Gazidis confirmed the club want to keep Wenger beyond the terms of his contract, with the possibility of the ex-Moncao boss extending his stay in north London beyond 20 years.