Looks like Kitase has come out to talk more about an FFVII remake - he wants it, but it's too huge of an undertaking for him personally.

“Even if I casually say I would like to do that, because it would be a huge project I would have to motivate myself to the level that I really am prepared to take on this huge responsibility,” Kitase said.
He continued: “I don’t know if those three things will happen simultaneously. It has to tick lots of very big boxes. I won’t rule out the possibility, but it would take a lot to make it happen. But should I ever take it on, it would have to be the biggest project I’ve done. My life work. So I would have to be as highly motivated as that to end up with something I’m very happy with. It’s a huge thing for me.”

Source

I certainly understand where he's coming from, but it still doesn't rule it out at all.