However, a last-ditch effort from Paris Saint-Germain to convince Mbappe to stay proved successful on Saturday, with the forward committing his future to the club until 2025.
I would like to let you know that I have decided to extend my contract at Paris Saint-Germain, and I am very happy about it.
I believe that I can continue to grow at a club that provides everything necessary to perform at the highest level. I am very happy to continue to play in France, where I was born and where I have made my name.
I would like to thank the President for his trust and understanding. The fans of Paris Saint-Germain, both in France and around the world, have supported the team in recent months. We will make magic in Paris.
According to sources, Mbappe contacted Madrid president Florentino Perez to inform him of his decision, as well as his teammates.
Sources said that Leonardo could leave the club as a consequence of the deal, with Mbappe preferring the former Monaco and Lille executive Luis Campos as a replacement, while the future of Mauricio Pochettino was also in doubt.
The club eventually paid a world record fee for a teenager in the form of Kylian Mbappe.
He has gone on to score a total of 168 goals in five years at the club, making him their second-highest all-time scorer.
The 19-year-old was voted France's player of the season three times, including this year, after he scored 25 goals and 17 assists to help Paris Saint-Germain win the title.
He supported Real Madrid when he was a boy and was close to joining in 2017.
The LaLiga club rejected a number of bids for Mbappe, despite the fact that he could leave for free at the end of his contract.
During the season, Madrid was in contact with the player's representatives and believed that he would join this summer.
With the end of the season fast approaching, there was uncertainty at both clubs over whether or not to keep him.
There was pessimism at Madrid over their chances of completing a deal, as well as nervousness and confusion, at the player's public behaviour and lack of communication.
In recent years, Madrid has built their transfer strategy around their pursuit of Mbappe. Paris Saint-Germain are looking to build a team around the forward to end their wait for a trophy.
Kylian's commitment to the club represents an amazing milestone in the history of the club, and a wonderful moment for our fans around the world, according to the club president.
Since joining our family, Kylian has achieved greatness beyond his years. He will be the foundation of our Club&s future both on and off the field.
I am incredibly proud and happy that we will continue our wonderful journey together. The greatest chapters of our future are for our fans and our Club.