It seems Real Madrid is just standing and watching the fight between PSG and Mbappe, if they continue this fight and PSG sells Mbappe because of not extending his contract, they can hire Mbappe easily which is much better for Real Madrid while if PSG doesn't change their mind, Real Madrid should pay 200m to PSG.
That is only natural because it is almost impossible for Real Madrid to want to spend 200 million for Mbappe, who will end his contract at PSG.
But now all decisions are in Mbappe's hands even though PSG really want to keep him but in my personal opinion Mbappe will definitely think about his future career and continuing his career at Real Madrid is of course more promising than if he stayed at PSG.
Now the situation is a little difficult for PSG, it seems they always have to start from scratch when they lose players because basically this team wants to be instant by buying several stars without wanting to process, that's a mistake in my opinion.