Arsene Wenger is a big admirer of the 18-year-old and had taken concrete steps to bring Mbappe to the Emirates this summer. Arsenal had a bid of around £87m ($111m) turned down by the Ligue 1 champions as they are holding out for a world-record fee.
Mbappe revealed after France's win over England that he is aware of interest from clubs across Europe and will sit with his family and his current employers to make a decision on his future. The Frenchman, who scored 26 goals for Monaco this past season, has made it clear his next destination will be based on his sporting ambitions rather than the remuneration on offer.
According to the Daily Mail, Mbappe has informed Monaco he only wants to leave for Real, despite interest from the likes of Arsenal, Liverpool and Manchester United. The young forward, who has been tracked by the Spanish capital club since he was 14, is ready to move to the Santiago Bernabeu this summer.
The 12-time Champions League winners' resolve to sign Mbappe is even stronger due to the uncertainty surrounding Cristiano Ronaldo's future at the club. The four-time Ballon d'Or winner is said to be outraged with his treatment by Spanish officials after he was accused of evading tax to the tune of €14.7m (£13m, $16m), and is now keen to leave Real this summer.
The Spanish giants will have to fork out a world-record fee to sign the France international from the principality club this summer, while any move for Ronaldo is likely to shatter that figure, with reports claiming that the entire fee could cost any interested club around £350m.