Real Madrid made an offer of € 170m (£ 145.6m) plus € 10m (£ 8.6m) in complements for the France international striker and gave PSG a deadline of midnight Sunday to respond.
Mbappe believes PSG promised him they would let him go if he got what he paid for him (€ 180m / £ 154m) and is now going back on his word.
If PSG decline the offer or do not respond, Real Madrid will switch to their Plan B and sign the player on a pre-contract deal in January so he can get it for free next summer.
Real and PSG had progressive talks on Thursday, but Sky Sports News has been informed that an agreement has not yet been reached.
Mbappe told PSG, who turned down Real’s £ 137million opening offer on Wednesday, that his dream is to play for the Spanish side.
His contract with PSG expires at the end of the season and he has so far rejected the French club’s attempts to renew his contract.
Speaking on Thursday, PSG President Nasser Al-Khelaifi discussed Real Madrid’s latest offer with be in sports, declaring: “We have always been very clear… the situation, the position of the club.
“We’re not going to say it every time. You know our position, it has not changed. “
However, Ligue 1 sporting director Leonardo was more open on Wednesday following Real’s first offer for Mbappe.
He said RMC Sport: “Kylian wants to leave, it seems clear to me. If Real Madrid make an offer, it seems clear to me… I’m taking a position which I think is clear to everyone.
“If he wants to leave, we are not going to detain him, but it will be on our terms.
“Kylian always promised that he would never leave the club for free. That’s what he always told us.
“We do not intend to speak to Real Madrid again. The deadline is August 31st at midnight. This is how the transfer window is going, but we are clear about it: we want to keep him and extend his contract.
“But we are not going to let him go for less than what we paid for him when we still owe Monaco money. “
PSG signed Mbappe from Monaco on a € 180million (£ 154million) deal in 2018 after a season-long loan.
However, they have only paid € 145million (£ 124million) so far with the remainder due either when Mbappe renews his contract or when PSG sell him.
Mbappe has scored 133 times and made 63 assists in 174 games in all competitions since joining PSG and helped them win 11 top national honors, including three Ligue 1 titles.
Real Madrid suffered losses estimated at € 300m (£ 257m) due to the coronavirus pandemic and David Alaba, who joined a free transfer earlier this summer after his contract with Bayern Munich, is the only addition to their squad so far during the current transfer window.
Meanwhile, PSG have signed Lionel Messi, Achraf Hakimi, Sergio Ramos, Gianluigi Donnarumma and Georginio Wijnaldum.
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Time is running out for clubs to do business – the summer transfer window ends at 11pm in England and midnight in Scotland on Tuesday August 31st and you can follow all the Deadline Day drama with Air sports.
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