Other clubs can negotiate with the out-of-contract Rabiot starting in January.
Liverpool are among the clubs have likely been encouraged in pursuit of Adrien Rabiot, with reports from France claiming that the midfielder has rejected a new offer to extend his contract at Paris Saint-Germain.
According to source Paris United, this is the third time the player has rejected such an offer from the French giants. PSG's latest offer - said to be €7.2m-a-year (€138,000 per week) plus bonuses - was turned down by the France international last week.
It has also been reported that the player shares a very poor relationship with the club's sporting director Antero Henrique but the player has always indicated that he wants his future to be one where he is still employed by PSG.
Last month, ESPN reported that the player and his representatives had been contacted over a possible future transfer to Anfield.
As of January 1, Rabiot will be free to engage in negotiations with other clubs unless the Ligue 1 outfit can convince him to sign a new deal before the turn of the year.
Liverpool would do well to bring in a player of Rabiot's quality next season, especially as it would cost them nothing. However, Barcelona are also thought to have a huge interest in signing the central midfielder and he could be tempted to move to Spain instead of England, given Barca's status among the world's elite clubs.
Rabiot has made 217 appearances for the Parc des Princes side and has represented France on six occasions.
He was omitted from Didier Deschamps' World Cup squad earlier this year and reacted quite angrily, refusing to be named as part of a reserve list.