PSG might even be evaluating the possibility of selling him before Mbappe has six months left on his contract. I say this depending on what the news says about PSG. It looks like PSG aren't willing to release Mbappe for free just like that. But the only way to prevent this is to sell him as early as possible. But this time they will have to find a replacement for him immediately.
Real Madrid wouldn't even want to make an offer already now to not pay any transfer fee after hearing about Mbappe's words. Mbappe has clearly stated that he won't extend his contract any longer so there is only one year left. Real Madrid should be able to make a good striker signing for next season and just go on now.
I haven't heard anything about Real Madrid's interest in Mbappe, maybe they don't want to sign him anymore, or Real Madrid are moving in silence. That happened because it is possible that Real Madrid have a serious figure for them to sign so that they no longer need Mbappe in their squad.
If Real Madrid gives up its intention to bring Mbappe to the Santiago Bernabeu, I think it will be a big regret that Mbappe will get. How could it not be, Real Madrid was his dream club, and when the opportunity came he missed it, and now that he intends to leave Paris Saint Germain Real Madrid no longer want him (if that's the case).
I don't agree with you that Real Madrid don't need Mbappe now. Because they have newly lost Benzema to Al Ittihad so they need to bring a new striker before the new season starts. If PSG give a signal like they will sell Mbappe this summer then Real Madrid would surely be in line to sign him right away. For now they are just waiting patiently to see how things will go.
As I said if they can't sign Mbappe now there is still no problem. There are many striker alternatives in the market now to fill the space in the lineup for next season. I don't know how much money they are eager to spend though because I think they might plan to allocate as much money as possible for Mbappe's demands and a possible transfer fee as a plus.