With all the young talent they have, if they add Kylian Mbappe, Real Madrid will certainly be even more extraordinary, at least that can be seen if we look at Mbappe's consistency at PSG, who has always been a mainstay and his absence from the team often makes PSG weak in attack. Currently, there are no rumors about Real Madrid again expressing interest in the French striker, perhaps they are doing it in secret to reduce the drama that might happen again to their target player, and with no news yet of Mbappe extending his contract at his current club, It looks like we will see him playing in LaLiga with Real Madrid, maybe in the middle of the season rumors about Mbappe going to Real Madrid will reappear and become hot news which will certainly make Nasser Al-Khelaifi annoyed because he really hopes that his player will stay at PSG as long as possible.
Mbappé would make a very good addition for Realmadrid, they're in need of a top striker even though they're currently performing well without one due to Jude Bellingham's good performance however he's one of the perfect player for that position and I believe it would be more easier to lure him into the team since he's already had a negotiation with them earlier this summer.
PSG knows Mbappé quality, they know he has alot to offer the team like he's doing currently and they'll try to keep him in the team for another season like they did this summer but it would be quite difficult cause i think Mbappé would really love to move to Realmadrid if they come for him, he'll get more opportunity to win the Champions League and the Ballon D'or title which he's currently working towards achieving.