It would probably be just daft for Mbappe to leave Europe at the start of his career for the Saudi League... Old guys like Messi and Ronaldo have gone there for the huge money and quiet life, they are already world players and have achieved a lot... Mbappe's journey is just beginning and he has a lot of different victories and titles waiting for him, which he can't get playing in the Saudi League...
Although Cristiano Ronaldo and Lionel Messi are at the end of their careers, they have gone to the Saudi League or America for a permanent period, but the Saudi club Al Hilal has made such a big offer to get Mbappe in the team for only one year. Since it is almost certain that Mbappe will go to Real Madrid next season, if he plays in the Saudi League for one year, I don't think it will have a bad effect on his performance. Since he has been offered for one year, Mbappe should consider this offer.
There is no evidence of Mbappe and Real Madrid having a deal already, Psg just want to use it as an excuse to chase Mbappe out of the club. The club don't want to let Mbappe go on free transfer next season, that's why we are witnessing these drama from both parties, to be Frank it won't be good if Psg allow their best player go fas free agent, it's a poor business for the club.
Mbappe has refused to accept the huge offer from the Saudi Arabia club, and he is willing to sort things out with Psg. I believe Mbappe will sign a year with Psg, because he want to play in the champions league again.
If Mbappe had extended his contract with PSG, he would not have damaged his relationship with PSG. If the contract is extended for another year and Mbappe wants to move to Real Madrid next season, PSG will accept the transfer fee from Mbappe, which will make his plan useless. If he wanted to pay the transfer fee to PSG, he would have joined Real Madrid this season. Since he does not want to pay the transfer fee to PSG, it is believed that his contract with PSG may not be renewed.