Gunners' boss Arsene Wenger has been heavily linked with a bid to sign the 23-year-old who has expressed a desire to quit the big-spending French Ligue 1 outfit because of his lack of first-team opportunities this season.
And, with Arsenal struggling defensively at times this term, it was thought Wenger would make a bid to take the France international to the Emirates Stadium this summer.
Sakho, who is under contract in Paris until summer 2014, told French paper L'Equipe: "In the mind of the coach, I'm the third [in the pecking order]. I finally come to accept it even if I do not understand it."
"I have to play at club level to qualify for the France team. Next season will be important," he added.
"It's been a difficult year and a half for me at PSG. To continue my progress, I must be playing."
Newcastle have previously been linked with Sakho, but with Jamie Carragher confirming that he will retire at the end of the season, Liverpool boss Brendan Rodgers is now pondering a bid to take the player to Anfield.
Arsenal last week