The teenage superstar will become the second most expensive player of all time next season after arriving on loan for this campaign.
PSG will pay £166m for Mbappe after this season, but al-Khelaifi claims other clubs offered more for his services.
And that "every big club wanted him".
Arsenal, Manchester City and European champions Real Madrid were considered the front runners before PSG swooped.
“It was very competitive, trust me - some other clubs offered him more than us,” al-Khelaifi tells The Telegraph.
"Every big club wanted him. But we explained to him our project and the ambition of the club and he’s French, he’s a Parisian and he had the club in his heart.
He wanted to stay in France and defends the French colours in the Champions League.
It’s deep inside him.
“He wants to write history here and he has history here already – you saw the pictures of him (at his unveiling) when he was here 10 years ago? A picture does not lie.
He loves the club and it’s his dream to play for Paris Saint-Germain.”
Mbappe's first game in a PSG shirt may be a sign of things to come as Mbappe scored in a 5-1 demolition of Metz.
PSG get their Champions League campaign underway at Celtic on Tuesday night, in the first of a tough Group B which also includes Bayern Munich.
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