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Goal reported on Tuesday that the Premier League club was preparing a late, cut-price bid for the France international, who is out of contract this summer and has demanded at least a doubling of his current 48,000 euros-a-week wage to stay in France.
Al-Khelaifi is in no mood to do business, however, and has warned City that he will target the club's star players should the club make a move for Matuidi.
Asked if he feared an approach from Manuel Pellegrini's side, he commented: "No. Because they know that if they touch one of our players, we will come into conflict with them, and we will also contact their players.
"We respect all clubs. But if a club try to recruit one of our players, they will have to accept the consequences. And what I say is not only for Manchester City, who, from what I know, have not contacted Matuidi."
Al-Khelaifi had earlier played down PSG's interest in Chelsea winger Eden Hazard, while he insisted that the club would never be in a position to sign Lionel Messi from Barcelona.
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