This rumor has been going on for a long time and since last year it has become something that is still being questioned. However, I am sure that it is unlikely that Mbappe and PSG will discuss this issue again until PSG fate in the UCL is resolved. The point is that until this season is over, then in the future we will see a clear response. Mbappe understands the turbulent situation out there regarding his relationship with Madrid, but like Madrid and PSG both of them will remain focused on finishing the competition first. Next season's transfer will happen soon and our curiosity will be answered.
What is certain is that here the possibility of moving to Madrid is quite high as long as Mbappe does not extend his contract with PSG. For the record, PSG without Mbappe contribution is nothing because it is proven that in every match that PSG plays, Mbappe presence is quite vital. Therefore, some time ago PSG had prepared player options if Mbappe were to leave.
In Real Madrid the attacking line is very strong, and the competition there will also be very strong, although it is clear that Mbappe will not sit on the bench. But since Vinicius is well established in the team, Mbappe may have to play as a central striker, which is not entirely usual for him, although Ancelotti sees it in his own way, he even has Carvajal playing in the center of defense.
Mbappe spoke about wanting to play for Arsenal, but for them (as well as for Liverpool) it would have been a complication on their wage bill, so they refused the transfer and now there are two options left for Mbappe, either PSG or Real Madrid.