Spain international Asensio, 27, will leave Real Madrid as a free agent with his deal ending later this month.

He won three Champions League titles in an eight-year spell in Madrid.

According to French media, Uruguay international Ugarte, 22, will cost PSG 60 million euros ($64 million). He has three years remaining on his contract with Sporting.

The two arrivals come days after Lionel Messi and Sergio Ramos departed the club and coach Christophe Galtier is also leaving.

PSG have been linked with moves for the French international trio of Bayern Munich defender Lucas Hernandez, Eintracht Frankfurt attacker Randal Kolo Muani and Borussia Moenchengladbach forward Marcus Thuram.

They are also in negotiations with Inter Milan's Slovakia centre-back Milan Skriniar.