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For awhile, Kylian Mbappe have final decision will leave Ligue 1 next season after not extending contract with PSG will over next season but I doubt that final decision or change later for renewing contract with PSG. Did you remember before when Mbappe contract will be over but in deadline window transfer closing he reached agreement extended contract two years later with PSG after fantastic offering from management. Depend with Kylian Mbappe priority he will push up his level career and moving to Real Madrid is the best option or keep staying with PSG and actually he will get another chance with fantastic offering and highest salary payment.
Looking with his rival Haaland have won Champion League I think Mbappe have move to Real Madrid if want to win Champion League tittle because have been several years with PSG but never winning yet.
Moving to Real Madrid doesn't give Mbappe a guarantee of winning the Ballon d'Or and the Champions League, but it does open up the possibility of doing so. But is Real Madrid really interested in him or is it just Mbappe who hopes to go there and help Real Madrid win it?
I would prefer if Mbappe moved to the Premier League regardless of whether he wants to go to Liverpool, Arsenal or Manchester City. In the Premier League he can be a better player than in La Liga where the competition is dominated by only two teams in the long run. The Premier League is different even though so far Manchester City has dominated the title in the last 6 seasons.