Square Enix designer Tetsuya Nomura reiterated the no-plans watch for a Final Fantasy VII remake any time soon, although it would take much more than the nuanced way he said it to put to rest the speculation on this game.
In the current Famitsu, Nomura, who designed the game's much-beloved characters, says:
Fans are looking forward to an oft rumoured remake of FFVII, but I don't believe this will happen for the time being. However, it's possible that he will appear in other titles as a guest character.
So, "for the time being," isn't a "no way, never," but it's indefinite enough that Final Fantasy VII fans are just going to have to play the PSOne original. That said, the potential for cameo appearances by the protagonist of this cherished game is something to look forward to.