There has not been any sign that Final Fantasy VII will ever receive a remake; if one is in the works, it is being kept very quietly.
However, the game was re-released on the Playstation Network.
As much as many would love to see a remake, it's very unlikely that it will happen. What developers run into is if they go down the path of remaking it strictly by upping the graphics, and preserving everything else, including storyline, gameplay, etc. you will have those fans who are turned away from it because they have an, "original will always be the best" mentality about it. Also they would run into all of the critics exclaiming, "this is just FF VII with better graphics!!!!"
If they went down the other path, and tried to not only enhance the graphics, but also adjust the gameplay, storyline, or any other aspects of it, they run into the fans who say, "This isn't FF VII. It should be called something different." Because again, "the original will always be the best." While either path may gain a small amount of new fans, the biggest problem is that in developing a remake, you would alienate at least some of the people who you should be selling the game to. The investment to return ratio is just too far on the investment side that I don't think you will see a remake happen. Don't worry though, from the looks of things, developers will keep trying to find new FF VII spin-off games. They sell, even if it is only to the ever-present fan-boy/girl whose rooms will still be decorated with FF VII memorabilia well after they are 25, 35, 45 with kids of their own and everything.