Per Sky Sports, the "deadline for PSG to respond to Real Madrid’s €170 million ($200.5 million) plus €10 million ($11.7 million) offer for Mbappe has expired."
Real Madrid can afford to draw a hard line in the sand with PSG. Given that Mbappe seemingly has his mind set on joining Real Madrid and is spurning a contract extension from his current club, Los Blancos could simply sign him on a free transfer next season.
In essence, Real Madrid can take the stance that PSG either accept their latest offer or risk losing arguably the best young player in the world without getting any transfer fee in return.
Kaveh Solhekol @SkyKaveh
Deadline for PSG to respond to Real Madrid's €170m + €10m offer for Kylian Mbappe has expired. Real Madrid walking away. More than likely now they'll wait until January & sign him on pre-contract agreement and he will join free next summer. Madrid confident Mbappe will sign
Jason Burt of The Telegraph reported earlier on Monday that Real Madrid were considering upping their offer for Mbappe. It's possible Los Blancos could return to the negotiating table one last time to secure Mbappe for this season, with the transfer deadline a day away.
Adding Mbappe would certainly aid in their quest to win La Liga and Champions League trophies this season.
Real Madrid have been planning for this moment for two years, after all. ESPN's Alex Kirkland reported that the Spanish giants "haven't paid a transfer fee to add to their first-team squad since the summer of 2019," with president Florentino Perez "saving up" for Mbappe.
With an Mbappe departure for Real Madrid all but imminent at this point, be it this summer or next, the only reason PSG might not sell is the prospect of European glory. The Parisien club has never won the Champions League, and keeping Mbappe to pair with Lionel Messi, Neymar and a humorously stacked roster arguably makes them the favorites this season.
Is that worth giving up hundreds of millions of dollars though?
Perhaps for Qatar Sports Investments, which owns PSG and has pumped over a billion dollars into the club since taking over in 2011, money isn't an issue in the face of potential footballing glory. Such a possibility is a sobering reminder of the obscene and unbalanced spending from the biggest clubs in modern football, with PSG near the top of that list.