The YouTube rivals looked on course to finally meet in the ring this year until Paul lost to Fury in February.
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And the American snubbed a rematch or talks with KSI, 29, to instead return on August 5 against ex-UFC star Nate Diaz, 38,.
So KSI has instead set his sights on Fury, 24, in a blow to his feud with Paul, 26, at last being settled.
But the British social media sensation re-opened the door to the fight when joining The MMA Hour.
KSI agreed to a 180lb weight and for the bout to be sanctioned by the British Boxing Board of Control.
The bitter enemies are also ready to make it a winner-take-all contest, with the loser forgetting their purse.
Paul’s side will only share the revenue 50/50 if the bout takes place at 185lb with no rehydration clause.
But they are open to the fight taking place at 180lb, with a limit to what he can weight the next day, so long as it is winner-take-all.
And KSI said: “For me, I don’t mind. I’m happy, 180 let’s go.”
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KSI is uncomfortable fighting Paul at 185lb, having weighed only 177lb for his last fight, against Joe Fournier.
But he is willing to face him at 180lb with no rehydration clause in the contract, which would limit what either can weigh the next day.
KSI’s fight with Fournier, 40, was marred in controversy after an accidental but illegal elbow ended the fight by knockout.
The Professional Boxing Association – who sanctioned the fight – confirmed an appeal has been lodged and will conclude by Friday.
KSI admitted he is expecting the result to be changed but insisted it will not stop his plans to fight Fury next.
He said: “I’m at peace with a no-contest. I don’t really mind because, for me, I’m a fair guy. If it is a no-context, it’s a no-contest.
“It is what it is. I don’t need a win. For me, the reason I came back was to knock out Jake Paul.
“These are all just side quests to get to Jake Paul, but now I can indirectly destroy Jake Paul’s legacy by beating Tommy Fury.”
Talks are now ongoing for KSI to fight Fury next and he joked he could hang up the gloves afterwards should it end in victory.
He said: “If I want to really be evil, then yeah I could. I fully could go, ‘Haha, I’m out, I’m doing music again. I’m doing Sidemen. Peace.’
“And then what? Then he (Paul) will always have this thing. But I dunno, there will always be a part of me where it’s like, you know what? I’d love to be the man that fully sleeps him.”
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