The lights are on
If Square Enix decides to remake Final Fantasy VII someday, it'll be once the publisher feels it created a Final Fantasy game that exceeds the quality of the 1997 PlayStation classic.
President and CEO Yoichi Wada discussed the topic of a Final Fantasy VII remake at a recent shareholder's briefing in Japan. According to a translated report by Andriasang, Wada said presently the company "is not making Final Fantasy games that exceed the quality of Final Fantasy VII." If they were to release a VII remake right now, "the Final Fantasy franchise would be done with."
The report also said the staff would happily make a Final Fantasy VII remake. If they decide to do it, they will give their full effort.