Kylian Mbappe receives ultimatum from PSG: Extend or leave now

Just when everyone thought that the Kylian Mbappe transfer saga would remain quiet after he signed a contract extension with Paris Saint-Germain just last summer, he is in the headlines once more just twelve months later.

The French forward controversially turned his back on Real Madrid last year to sign a two-year extension with PSG, which includes an option to extend for a further year until 2025. However, it has now been revealed that he has decided not to trigger that option, leaving his future up in the air once more despite still having a year left in his current deal with the Ligue 1 champions.

Mbappe makes it clear that he does not want to leave PSG now

It may be remembered that the France international was heavily linked to a move to the Spanish capital on a free transfer in the summer of 2022. However, the football world was shocked when PSG suddenly announced his two-year extension until 2024, with an option for an extra year.

The Real Madrid hierarchy and the club's fans were understandably irked by the snub, and for the better part of the year, everyone appeared to be resigned to the idea that no further talks would be held until 2024.

Mbappe confirmed the same in an interview with Italian outlet Gazzetta dello Sport, stating that his choice not to take up the option to extend until 2025 does not mean that he plans to leave Paris immediately. "I didn't ask to leave PSG or to join Real Madrid," he said.

"I just told the club that I won't activate the option to extend the contract until June 2025. We never discussed new deal with PSG, but I'm happy to stay here next season," he added, slamming reports that he is seeking a move this summer.

Why is Mbappe in the middle of transfer talks this summer despite still having a contract?

Despite the fact that Mbappe wants to honour the remaining year of his contract, Italian journalist Fabrizio Romano is insisting that PSG have given him an ultimatum. The club's owners reportedly want him to either sign an extension now, or agree to be sold this summer instead of leaving on a free transfer in 2024.

The Ligue 1 giants are reportedly unwilling to lose their star forward on a free transfer when his contract expires at the end of the coming season. As such, if he is determined not to renew, they want to cash in on him this year.

PSG are understandably unhappy about Mbappe's decision not to renew, with the future of the club being tailored around him. The departures of Lionel Messi and Sergio Ramos signalled an end of an era, and Mbappe was supposed to be the focal point of their new sporting program.

Real Madrid are back in the picture

The Spanish giants were ready to drop a lot of money for Mbappe last season, but that ship has sailed after his decision to stay in Paris. Los Blancos were expecting to have Karim Benzema for at least another season, but his decision to suddenly head to Saudi Arabia completely messed up their plans.

Real Madrid also let go of attackers such as Mariano Diaz and Eden Hazard even before the season officially ended, making it clear that they are keen on refreshing the forward line. As such, the club may suddenly be forced to rethink their Mbappe plan especially with the recent development about the said "ultimatum."

It needs to be pointed out that PSG are not short of cash, and wanting to sell him for a fee may be more a matter of pride that an issue over finances. The Emir of Qatar, Tamim bin Hamad Al Thani, could well afford to let the player's contract expire in 2024. However, he would not be keen on letting go of one of his best players without a fight.

Not only is Mbappe important in terms of his skills, he will also be at the centre of the club's image and marketing campaigns moving forward. The Emir is not known to think about the practical side of things, and he may insist on keeping Mbappe or selling him to another club just to keep him away from Real Madrid.

Los Blancos have also been linked to both Harry Kane and Kai Havertz, but those reports have since been overshadowed by the possible availability of Mbappe. Real Madrid won't be keen on hyping up a possible move after having been stung by the previous snub. However, the grapevine is filled with reports stating that they are willing to part with up to €200m (£171m) to finally bring Mbappe to the Santiago Bernabeu.

Mbappe will then need to fit into Carlo Ancelotti's system, which means he might need to move to the centre forward position to fill the gap left by Benzema.