According to ex PSG midfielder Jerome Rothen, the French international was on the verge of agreeing a move to Madrid this summer.
The 21-year old has been linked with a transfer to the Santiago Bernabeu ever since he arrived in Paris, and Rothen indicated a switch was close.
“I know from club sources that Mbappe to Madrid was almost done, he told an interview with Radio Montecarlo, reported via Marca.
“With what is happening (with Coronavirus), I am sure it will be postponed. But in no case will Mbappe’s contract be extended.
“The club has agreed to part ways with him this summer, it is just a matter of time.”
Zinedine Zidane has highlighted his French compatriot as a potential signing, after the former AS Monaco man hinted he wanted to leave Paris.
Mbappe is under contract with the Ligue 1 giants until 2022, but with an extension unlikely, PSG are considering a summer sale.
PSG remain determined to secure a return on the €145M they paid for him in 2018, with offers in excess of €150M considered.
However, with the Coronavirus pandemic impacting club’s finances, a price tag of €150m is out of reach of Real Madrid this summer.
Zidane was hoping to raise fund by selling the likes of Gareth Bale, James Rodriguez and Luka Jovic, but with the global transfer expected to be depressed this season, teams like Madrid have to adjust to a new world where their players are worth 50-60% of what they were worth three months ago.