Real Madrid, unable to sign Mbappe: PSG is already working on his contract extension

Paris Saint-Germain v Montpellier HSC - Ligue 1 Uber Eats
Paris Saint-Germain v Montpellier HSC - Ligue 1 Uber Eats / Christian Liewig - Corbis/GettyImages

In a potential twist that could reshape the transfer market landscape, Real Madrid president Florentino Perez's dream of signing Kylian Mbappe might be derailed due to the club's financial situation, as reported by the Telegraph.

The salary demands of the prodigious French player appear to exert extraordinary pressure on Real Madrid's already tight finances. The economic challenges faced by the club threaten to fade Perez's vision of seeing Mbappe don the iconic white jersey at the Santiago Bernabeu.

Sources close to the Madrid-based club, as reported by RMC Sport, suggest that Real Madrid might not have the financial means to execute a spectacular move for Kylian Mbappe.

A strong statement from an internal source at the Merengue club highlights this dilemma: "If Mbappe wants to come, let him do the work." This statement suggests a potential shift in focus, with an increasing number of voices within the club favoring Erling Haaland over the costly pursuit of Mbappe.

Erling Haaland, the prolific Norwegian forward, has emerged as an attractive alternative for Real, which sees his arrival as a more economically viable option given the current constraints. Decision-makers at the club seem to be recalibrating their strategy, acknowledging the need for a pragmatic approach in the current economic climate.

On the other hand, as reported by Canal+, a meeting between PSG and Kylian Mbappe is already scheduled to discuss a potential contract renewal. The French giants show their interest in retaining their star, and negotiations are expected in the coming days.

The convergence of these developments paints a fascinating picture for the future of Kylian Mbappe, Real Madrid, and Paris Saint-Germain. As financial limitations cast shadows on the high-profile transfer, the Merengue club faces crucial decisions on whether to recalibrate their strategy toward a more economically viable target or embark on an ambitious effort to secure the services of one of the world's most coveted talents.

The upcoming weeks promise to provide clarity on the directions both Real Madrid and PSG will take as the football world eagerly watches the unfolding saga.