According to the ‘Daily Mail’ Real are still monitoring the situation, with a late summer move still on the cards.
Mbappe joined the French Ligue 1 champions from Monaco in August last year on a loan deal, that is due to be made permanent this year.
PSG chose to start with a loan move in order to help them comply with Financial Fair Play regulations, and to defer the £163million payment until summer.
According to news outlet ‘AS,’ PSG could already be facing FFP sanctions which could be preventing them from making Mbappe’s move permanent.
The Spanish news outlet claims that UEFA will have to finish their investigations before August 30, which is the day before the transfer window closes.
If the investigation finds wrongdoing, PSG could be lumbered with a transfer ban, which could mean Mbappe would return to Monaco, or that Real would be able to make their swoop.
If PSG do end up losing Mbappe, it would be blow to both the player and the club.
The 19-year-old has started the season in great form, coming of the bench against Guingamp to score twice and secure a 3-1 victory.
Neymar to Madrid?
Neymar is likely to join Real Madrid if he decides to return to LaLiga from Paris Saint-Germain, ex-team-mate Yuri Berchiche has said.
The Brazil star continues to be linked with a move to the Santiago Bernabeu, though he has insisted he is happy in France and Madrid denied they have made any bid last month.
Yuri, who spent last season with PSG before heading back to Spain to join Athletic Bilbao, thinks Neymar is likely to join the European champions if he does leave PSG, despite any strong links to old club Barcelona.
“I see him returning but more in white than in blue and red,” Yuri told ‘El Larguero’.
“He was very happy at Barcelona. He still likes La Liga because I spoke with him about it, we have a good friendship, and he’s a fantastic person.
“If he joins Madrid I wish him the best of luck.”
Neymar marked his return to domestic action with a goal in the 3-0 Ligue 1 win over Caen last Sunday.
He has four years left on the contract he signed last year when he moved from Barca in a world-record €222million deal.