The long-term Real Madrid target has been made available for transfer by PSG, with less than a year remaining on his contract.
PSG opted to sell Mbappe this summer rather than risk losing him on a free transfer. Mbappe had previously indicated that he would not exercise the one-year contract extension option.
Al Hilal, backed by Saudi Arabia's Public Investment Fund (PIF), emerged as a serious bidder with a bid far exceeding PSG's initial €200m (£172m) valuation.
Sources indicate that PSG has accepted the offer, granting Mbappe permission to discuss a potential move to Saudi Arabia.
Al Hilal has already attracted prominent names like Cristiano Ronaldo and Karim Benzema with their financial prowess.
While Mbappe has previously expressed interest in joining Real Madrid, Al Hilal's offer has sparked a new twist in the transfer saga. PSG's intermediaries are working to generate further interest from other clubs, but Al Hilal's world record bid puts them in a league of their own.
Real Madrid is closely monitoring the situation, aware that they can negotiate a pre-contract agreement in six months. However, for now, they must contend with Al Hilal's efforts to convince Mbappe that a move to Saudi Arabia could be the right move for his career.