Not sure about that. There are always rumours about FFVII floating around, but Square/Enix did state that it was the end of FFVII when FFVII: Dirge of Cerberus was released.

But with such a famous franchise and such a huge fan base for that specific game in the series I think they would be mad not to build on it and either remake the original VII, or create an epic sequel that incorporated the original, but updated version.