http://www.g4tv.com/thefeed/blog/post/725346/final-fantasy-7-remake-shelved-until-original-ff7-has-been-topped/
Basically they won't even consider doing VII until they make a game that tops it.
which won't happen.
Considering FFVII isn't the best Final Fantasy to begin with(though its quality still stands the test of time, despite hipster hate), they may as well remake the intercourse ing thing. It'd obviously be a money maker.
Without some of the key members of the old development team though, like Sakaguchi, I'm not sure how a remake would turn out so whatever decision they make, I'm okay with it.
Remake not happening, but PC re-release coming out:
http://eu.square-enix.com/en/games/final-fantasy-vii (http://eu.square-enix.com/en/games/final-fantasy-vii)
I won't buy it because I don't like Final Fantasy, but it's always funny to see people say Square-Enix is "selling out."
That is the best they can do for now: Issue a PC version of the game