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Speaking to Famitsu, Square Enix's Tetsuya Nomura told the Japanese magazine that a FFVII remake is not a priority at this time.
"There are a lot of people who want a remake of Final Fantasy VII. However, new titles take precedence. We work our hardest to make something that might be even better than Final Fantasy VII. The new Final Fantasy must overcome the Final Fantasy of the past.”
While Square is focusing on their current release, FFXIII-2 with followup DLC and a possible rumored FFXIII-3, they are also working on Final Fantasy X HD remake which makes their statement regarding FFVII seem a bit confusing.