The Ligue 1 club's president Nasser Al-Khelaifi has advised any potential suitors of the France international to refrain from trying to lure him from Parc des Princes, or face the prospect of PSG pinching their own players.
Citizens boss Manuel Pellegrini has been credited with an interest in bringing the 26-year-old to the Etihad Stadium, with his contract set to expire at the end of the season.
Meanwhile, the Daily Express also suggests that Blues boss Jose Mourinho is monitoring Matuidi's situation in Paris, as he too weighs up an offer to take him to Stamford Bridge.
Chelsea have already completed the signing of Nemanja Matic from Benfica, but with Mourinho eager to rebuild his midfield, is eyeing up a potential bid for PSG's defensive midfield star.
"Interest from Manchester City in Matuidi? I am not worried because they know that if they touch one of our players, then we will be in opposition to them, and we will go and contact their players too," Al-Khelaifi explained in an interview with L'Equipe.
"We respect all clubs, but if a club tries to buy one of our players, then it will have to face consequences."
He added: "I don't aim this at Manchester City, as from what I know, they did not contact Matuidi."
Matuidi has made 28 appearances in all competitions for PSG this season, scoring three goals, so you'd imagine that manager Laurent Blanc will be keen to tie him down to a new deal.