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PSG need to get money from Mbappe so they will not release the player. They will not terminate the contract and let Mbappe goes away as a free agent. They can reduce price at the end to sell Mbappe but they can hold the negotiation to bargain as highest transfer price as possible.
Of course PSG don't want to lose Mbappe without profiting from his sale. I think it would still be good to lower the price instead of letting him go for nothing, but many teams are monitoring the player's situation so far. I believe PSG will eventually lower their prices when neither team really wants to pay the amount they are asking, that is a consequence that will probably be considered.
Luis Enrique has the desire to keep Mbappe in his squad, but he has no more power than to make his wish known. Kylian Mbappe will decide his future at the end of next season, but he also has the possibility of staying at PSG if something is reached in a new deal.
Kylian Mbappe is undoubtedly an amazing footballer. Kylian Mbappe is currently one of the best attacking players in the PSG team. Therefore, the PSG authorities will not want Mbappe to leave the team, causing danger to the team.