The club's president Nasser Al Khelaifi confirmed the decision at a press conference in Doha on Tuesday.
"We are a bit disappointed that he won't be coming, of course," he told journalists. "But we are all agreed that it's preferable for everyone this way."
The club's sporting director, Leonardo, said on Tuesday that family reasons had led to the footballer's decision, reported sporting daily L'Equipe.
"It's over. It's a shame," said Leonardo. "David really wanted to come to Paris, but the welfare of his family in LA, the wish not to change everything in his life, weighed heavily," he said.
The BBC reported that Beckham is more likely to extend his stay with US club Los Angeles Galaxy, which he helped to take to victory in the Major League Soccer Cup in November.
The decision ends months of rumours that fuelled speculation Beckham was on his way to France. These included reports that T-shirts with Beckham's name were already being produced.