"Since the Final Fantasy VII tech demo at E3 2005, there have been a lot of rumors about the presentation hinting at an actual remake. While the June 2006 issue of Electronic Gaming Monthly confirms the remake for release in 2007, Square Enix has never stated this.

    We have however confirmed that development has begun for Final Fantasy XIII and Final Fantasy Versus XIII on PlayStation 3. These titles are part of the Fabula Nova Crystallis Project which also includes a mobile game titled FINAL FANTASY Agito XIII."
Does Square Enix's statements mean that the possibility of a Final Fantasy VII remake is zero? To the hopeful, definitely not. But what it does mean is, that as of right now, the Japanese giant has not confirmed or stated that the game is real in any official or documented capacity.

More as it develops, as we're sure we haven't heard the last of this just yet.