This thing has been "on its way" for a long, long time. Now, we are finally getting some concrete stuff, in the form of a gamplay/trailer below. The Final Fantasy VII Remake retells the story of the original game, following Cloud Strife, a former Shinra soldier who joins the AVALANCHE eco-terrorist group as a mercenary to fight against the Shinra corporation, who have been draining the planet's life energy. In short, they are total jackholes. Of course, along the way, he becomes involved in something much bigger, and the usual world ending shenanigans go down.
Unlike ports of the original game that was released for PC, this is a full-on remake built from the ground-up, with full polygonal graphics as opposed to the pre-rendered environments of the original. As you can tell from the video below, there won't even be turn based combat this time around, instead going with a full on action RPG approach.
There is currently no release date for the Final Fantasy VII Remake.