United boss David Moyes was preparing a summer bid for the Brazilian-born holding midfielder but the price will now be too much for the Premier League champions.
United had hoped to get a cut price deal for the former Inter Milan and Barcelona star but Moyes will now have to look elsewhere as he struggles to sure up his inconsistent midfield.
Motta played the full 90 minutes for the Ligue 1 side in their midweek cruise against Bayer Leverkusen in the Champions League and is expected to go to the World Cup with Italy.
“I am very happy that I can play for Paris Saint-Germain until 2016,” 31 year old Motta said.
“My intention was to continue playing for this team so now everything is fine for me.
“I will keep my feet on the ground and continue to work as I have before, to help PSG to win titles.”