Back in June 2012, Square Enix themselves said that there won't be a FFVII remake until they release a new RPG that tops the original FFVII in terms of quality and sales.
http://www.gamespot.com/news/no-final-fantasy-vii-remake-until-square-enix-tops-original-6384331
It is a cheap attempt to increase their sales because they know how bad we all want it, probably we can keep dreaming because the franchise started to go downhill after the great FFX. I strongly doubt that FF will be back to the golden era unless those three talented men work again together:
- The original director and godfather of the series Hironobu Sakaguchi
- Music composer Nobuo Uematsu
- Character designer Tetsuya Nomura
This will not happen since the director left the company after he made the movie FF:spirits within and it failed horribly in the box office, the music composer decided to retire, his last work was the exclusive RPG for the Wii: The Last Story. FFXIII and FXIII-2 were average, the music is nothing compared to the old ones, still the character design was good because Nomura was involved.
That's definitely not a remake, Square Enix did make a tech demo for FFVII on the PS3 about six years ago showing how the game can look using the PS3's power.
http://www.youtube.com/watch?v=thsnDqQu0mQ