After recently revealing that he would inform everyone of his future on Sunday, it was reported on Friday that Mbappe had made a U-turn on his decision by agreeing to extend his contract in Paris.
Following Real's attempts to bring the Frenchman to the Bernabeu last summer, it had been widely expected for the past 12 months that he would make the move to Spain at the end of this season following the expiration of his contract with the Ligue 1 champions.
However, the Los Blancos president has informed the club's players that the 23-year-old will not be joining up with them next season, according to Spanish football expert Guillem Balague.
Tweeting from his personal Twitter account on Friday evening, Ballague said: "I have just been told that Florentino Pérez has told the players tonight in the changing room that Mbappe is not coming. Let's wait to hear what Mbappe has to say before we confirm anything."
Perez reportedly had the conversation with the Real players in the Bernabeu dressing rooms following their 0-0 draw with Real Betis in their final La Liga game of the season on Friday.
Since making the big-money move to PSG from Monaco in 2017, Mbappe has gone on to score 168 goals in 216 appearances across all competitions for Les Parisiens.