The Black Cats were close to landing Michut earlier this week and the player was even in England to complete the move before it derailed.
PSG tried to add clauses into Michut’s loan deal which Sunderland rejected and the player went back to France.
However, Sunderland remained in talks with Les Parisiens for the midfielder and managed to revive a deal for him.
The Wearside giants agreed to include a buy option worth €5m in the loan contract for the 19-year-old.
Michut has completed all the formalities ahead of his move and has now put pen-to-paper on a loan deal with Sunderland.
The Black Cats are set to make the addition of the young midfielder to their ranks formal with an official announcement soon.
PSG have also managed to negotiate a sell-on clause in the deal for Michut, who will link up with incoming boss Tony Mowbray at the Stadium of Light.
