Square Enix has revealed that a Final Fantasy VII Remake novel is on the way, and it will focus on the lives of Aerith and Tifa. The novel is currently only slated for a Japan release, but there's a strong chance it will receive an English and possibly other localizations in the future.
The original Compilation of FF7 consisted of games, movies, and novels. The two Final Fantasy 7 novels, On the Way to a Smile and The Kids Are Alright: A Turks Side Story, were written by Kazushige Nojima, who also worked as the Scenario Writer on the original FF7, FF7 Remake, and the upcoming FF7 Ever Crisis. On the Way to a Smile is an anthology of short stories set between the events of FF7 and Advent Children, while The Kids Are Alright follows a new character named Evan Townshend, who starts a detective agency in the city of Edge after the events of FF7. Characters from The Kids Are Alright appeared in FF7 Remake, confirming that it's still canon in the new timeline.
FF7 Remake is now spinning off into its own multimedia franchise. The official Japanese Square Enix website has a listing for a light novel titled Final Fantasy VII Remake Trace of Two Pasts by Kazuhige Nojima. The book is currently set to be released on July 15, but only in Japan at publication time. There's a good chance that the book will receive an English localization considering that previous FF7 books have, save for one non-canon book about Aerith.
FF7 Remake Trace of Two Pasts will follow the backstories of the Remake timeline's Aerith and Tifa. No details about the book outside of its release date, 288-page length, and $15 price have been revealed so far. The fact that it's written by Nojima means that its contents will almost certainly be canonized alongside with the events of the FF7 Remake game, meaning it could tangibly impact the story of the in-development sequel.
It will be interesting to see if this book reveals any FF7 Remake sequel secrets. The backstories of Aerith and Tifa are especially interesting, as they appear to be different from the original game's canon. Aerith clearly knows more than she's letting on, suggesting that she's aware of the events of the original FF7 timeline, while Tifa doesn't seem to know as much, if anything, about the game's events. It's suggested in FF7 Remake that Tifa isn't aware of Cloud's plot twist, while she was in the original game. It remains to be seen whether these significant plot points will be addressed in a light novel, rather than a future entry in the video game series, but it wouldn't be unprecedented.
Final Fantasy VII Trace of Two Pasts will be available in Japan on July 15, 2021.
Source: Square Enix