Most PhD supervisors are very understanding of this situation - they're used to students having to juggle offers, so it shouldn't be a problem if you do decide to go to the other place. The main thing is to be upfront (but polite) about it and to let them know as soon as you're able to, so they can find someone else to fill the place. Might be worth mentioning to them (if you haven't already) that you're still being considered for another institution, though, just so they're aware. I was in a similar position, and ended up having to choose - the other institution was fine about it, and I've actually been co-authoring a paper with the person who would have been my supervisor had I gone there, so it doesn't need to sour anything. Good luck!