The 19-year-old forward has been heavily linked with a potential world-record transfer to the Bernabeu.
He is currently playing for France at the World Cup in Russia where he has scored three goals in four games to help his country reach the quarter-finals.
“Given the information published in the last few hours regarding an alleged agreement between Real Madrid C.F. and PSG for the player Kylian Mbappe, Real Madrid would like to state that it is completely false,” the La Liga club said in a statement on their website.
“Real Madrid has not made any offer to PSG or the player and condemns the spreading of this type of information that has not been proven by the parties concerned.”
Mbappe began his career at Monaco, helping them win Ligue 1 and reach the Champions League semi-finals in 2017 before moving to rivals PSG last summer.
The transfer, initially a loan deal which was made permanent for a reported £128million, made him football’s most expensive teenager.
He scored 13 times in 27 league games during his first season in Paris as PSG reclaimed the title.
— Real Madrid C.F. 🇬🇧🇺🇸 (@realmadriden) July 4, 2018
France sensation Kylian Mbappe could be moving to the Santiago Bernabeu, after reports in the French media claimed a deal worth €272 million has already been agreed with Paris Saint-Germain.
And French journalist Baptiste Ripart, who also predicted Antoine Griezmann‘s contract renewal as well as Thomas Lemar’s arrival at Atletico Madrid correctly, has reported that a deal has been struck between Los Blancos and Ligue 1 winners PSG for the 19-year old.
The fee though will be paid in four installments as PSG are still being investigated for Financial Fair Play.
Mbappe was hugely impressive in France’s 4-3 World Cup last-16 victory over Argentina, where he scored a brace in a performance full of pace and power.
However, Brazilian superstar Neymar also continues to draw interest from Champions League winners Real
The Portugal forward has often threatened to leave the club, but a solution and a deal has always been found to extend his stay with the Spanish giants.
President Fiorentino Perez is no hurry to accept an offer from the Serie A side, and the club will evaluate bids from different clubs before making a final decision.
Meanwhile Ronaldo himself, had hinted at an exit from Spain after Los Blancos secured their third consecutive Champions League win in May.
If the former Manchester United man is to leave the Bernabeu, he can expect to earn a staggering $35 million a year at the Turin Stadium, according to Spanish publication Marca.