Paris Saint-Germain progressed to the quarter-finals of the Champions League on Tuesday after beating Liverpool 4-1 in a penalty shoot-out to win an epic last-16 tie between the clubs.

PSG outplayed Liverpool during last week's 1-0 home loss, but goalkeeper Alisson kept the English club in the game with a string of magnificent saves before substitute Harvey Elliott scored in the 87th minute to seal a smash-and-grab win.

PSG were incredibly unlucky not to beat the English Premier League leaders at the Parc des Princes in Wednesday's first leg, a game in which they had 65 percent possession and 28 attempts on goal to the visitors' two.

Champions League holders Real Madrid will play local rivals Atletico Madrid in the last 16 of the competition Liverpool will take on Paris Saint-Germain after the teams were paired together in Friday's draw.

Paris Saint-Germain can look forward to a showdown with either Liverpool or Barcelona in the last 16 of the Champions League after mercilessly crushing French rivals Brest 7-0 on Wednesday to win their play-off round tie 10-0 on aggregate.

Paris Saint-Germain fans have been witnessing the emergence of Dembele 2.0 throughout the season.

The first leg of the knockout phase playoff tie will take place in a sold-out venue in Guingamp, where Brest are hosting the match due to UEFA stadium regulations.

The biggest movers in the European window were Manchester City, who have bolstered their squad right across the board.

Paris St Germain manager Luis Enrique praised the strength of Ligue 1 as his side prepare to face Brest on Saturday before their all-French Champions League playoff against the same side in February.

Santos' president told Brazilian superstar Neymar it was "time to return to (his) people" in a video published on social media on Tuesday.

Paris Saint-Germain had been let down by their inability to score goals in this season's Champions League but everything clicked on Wednesday, when they produced a brilliant fightback to beat Manchester City 4-2 and finally kickstart their campaign.

The bloodied Italy international was left requiring 10 staples after suffering lacerations to the right side of his face when he was caught by the studs of Monaco defender Wilfried Singo.

France star Kylian Mbappe has referred his former club Paris Saint-Germain to the disciplinary committee of the French league in a row over unpaid wages and bonuses, a source close to the body told AFP on Monday.

PSG visited Bayern's Allianz Arena on Tuesday and a section of the home support unveiled a banner with a profanity aimed at the "plutocratic Al-Khelaifi".

Paris St Germain coach Luis Enrique was left frustrated after Tuesday's 1-0 loss at Bayern Munich in the Champions League, but remained hopeful that the Ligue 1 winners would progress to the next round of the continental competition.

A gigantic banner proclaiming "Free Palestine" unfurled by Paris Saint-Germain (PSG) supporters at a Champions League match has no place in a football stadium, France's interior minister said on Thursday.

Kai Havertz and Bukayo Saka inspired Arsenal's 2-0 success against Paris Saint-Germain on Tuesday as the Gunners secured their first win in the Champions League this season.

PSG had over 60 percent possession and 24 attempts on goal but looked set to be left frustrated by their opponents at the Parc des Princes until a low Nuno Mendes cross squirmed under Gazzaniga and into the net in the 90th minute.

Paris St-Germain said Nuno Mendes had their full support after the defender was subjected to racist and abusive messages and comments on social media following a 3-1 home win over Brest in Ligue 1.

Kylian Mbappe's entourage said on Wednesday they had refused the French football league's (LFP) offer to act as a mediator between the France captain and Paris Saint-Germain in their dispute over unpaid wages and bonuses for the striker.