I remain on the fence as to whether this actually happens.
I've wanted a FFVII remake for the longest time. But with SE in its current state, I'm no longer sure this is a good idea. They have absolutely zero hope of pleasing the large, hyper-critical subset of fans who won't settle for anything less than a 100-percent faithful remake of a 1997 game...ONLY IN HD!
I'm just picturing it now. (WARNING: pessimistic whining below)
Worst case scenario? The unique "feel" and humour of the original will be scrapped in favour of FFXIII-style po-faced melodrama (seriously, can you imagine present-day Square Enix including goofy shit like the cross-dressing, the Honeybee Inn, and Cloud going snowboarding?). Most of the retcons and tryhard new characters from the Compilation will probably be shoehorned into the plot. The turn-based combat will be replaced by Advent Children-esque gravity-defying, flippy-dippy bullshit. No World Map (we'll be lucky if we even get half the towns from the original game). DLC cashgrabs, possibly including Gold Chocobos, rare Materia and Lightning costumes for Tifa, Yuffie and Aerith. Hell, I wouldn't be surprised if they somehow found a way for Lightning herself to make an appearance, since she's officially the "female Cloud" and all. VOICE ACTING, the lack of which made most of the cutscenes in FFVII actually bearable.
Nope. As flawed and dated as it is, I'll stick with the original, thanks.
