Mbappe sensationally swerved a move to Los Blancos over the weekend, instead signing a three-year contract extension with Paris Saint Germain.
Having seen move to Carlo Ancelotti's side fall through last summer, it was anticipated that Mbappe will finally join Real Madrid as a free agent next season.
But the Frenchman has been convinced to stay at the Parc des Princes and he reckons how disappointed the Real Madrid fraternity will be because of his decision.
"Today I wanted to announce that I have chosen to extend my contract at Paris Saint-Germain," Mbappe wrote in a Twitter post on Sunday.
"I'm convinced that I can continue to grow here, at a club which is giving itself every means to reach the top.
"I would like to thank the president, Nasser Al-Khelaifi, for his confidence, his attention and his patience.
"I also have a thought for all of the PSG supporters, in France and around the world, for their countless shows of affection, especially in these last few months.
"I am very happy to continue playing in France, the country where I was born, grew up and blossomed."
Mbappe added: "I would also like to sincerely thank Real Madrid and their president Florentino Perez. I am aware of the chance and privilege I had at being coveted by such an institution.
"I can imagine their disappointment. It is as big as my own hesitations.
"I will be their biggest fan in the Champions League final in Paris. At my home."
Mbappe scored for PSG against Real Madrid in each leg of their Champions League encounter in the round of 16 stage this season.
