The French star's decision to tell the Qatari-owned club he would not be extending his contract next summer continues to shape this summer's window, and has now led to a "shocked and disappointed" Nasser Al Khelaifi admitting "he can't leave for free".
It is widely accepted in football that Mbappe will eventually go to Madrid but there is currently a stand-off between the two clubs from long-held tensions around the player and other issues.
PSG are adamant Madrid must pay what they want. But Bernabeu president Florentino Perez does not want to pay PSG a penny for Mbappe. The Spanish club recently announced that their spending was finished for the summer with the surprising deal for Joselu, who is seen as a temporary replacement for Karim Benzema before going all in on Mbappe next summer.
Madrid are determined to stick to that and hold their nerve and do not currently plan to spend any more, with their budget for the summer settled. The only element that may change that is if Mbappe himself encourages a move.
Little competition for Mbappe is envisaged, in part because of his own desire to emulate Cristiano Ronaldo and go to the Bernabeu, and in part because of a rare status that prices all but about four or five clubs out of being able to sign him.
Sources with knowledge of the situation were on Friday insistent that there was no bid from Liverpool, as any such move is simply beyond the club's transfer plans.
In any case, it is understood that Arsenal would actually be Mbappe's first preference if he were to ever go to the Premier League, both because he likes the evolution of Mikel Arteta's team and would also enjoy the challenge of delivering the title to the club again.
He is nevertheless seen as way beyond Arsenal's budget, too, and it should be stressed there has been no contact. Much will depend on whether there is a serious move, either by another club or Mbappe himself, as to whether Madrid go on to purchase him this summer.
The player himself is nevertheless relaxed about the situation. It is not seen as realistic that PSG park him on the bench for the season if they can't secure a fee this summer.
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