Cops are supposedly probing a “foreign” man seen in the Algarve around the time of her disappearance in 2007.
Scotland Yard officers have since met with Policia Judiciaria detectives in Porto, Portugal, and are “nearer to knowing what happened to Madeleine”, local media reported last week.
But the missing tot’s parents Kate, 51, and Gerry, also 51, aren’t getting their hopes up.
A family friend told The Sun Online: "They have had their hopes raised then dashed many times in the past so they are not getting buoyed up by any fresh developments. It’s too devastating when nothing comes of it.
DETECTIVES searching for Madeleine McCann are set to be given more cash in the £11m hunt for the missing girl.
The Home Office is likely to approve the Met Police's request for extra funds to help continue the investigation into Madeleine's disappearance.
Funds for Operation Grange - established to probe what happened when the little girl went missing - are set to run out in days.
But a source told the Sun Online "there will be no problem" with new funds being given the green light and the operation will not be axed.
A Met Police source said today: "There has been some recent speculation that the investigation into Madeleine's disappearance could be put on hold or discontinued because of the coronavirus epidemic and a shortage of officers working.
SEARCH 'WILL GO ON' "This isn't the case and we can't see the outbreak causing a problem for this ongoing inquiry.
"Neither can the Home Office.
"We've been told there will hopefully be no problem with new funding."
Madeleine's parents Kate and Gerry say they're buoyed up by Scotland Yard's "iron will determination" to continue with the search for their daughter, who vanished during a family holiday in Portugal nearly 13 years ago.
Through their spokesman Clarence Mitchell, the couple say they are "greatly encouraged that officers believe there is active work left to be done".
Mr Mitchell said: "While an active investigation is ongoing, it gives them hope that one day they will find out what happened to Madeleine after all these years.
MADDIE VANISHED ON HOLIDAY "The Met has an iron will determination to find the answers Kate and Gerry so desperately want."
Maddie was just three when she disappeared from a holiday apartment in Praia da Luz in May 2007.
Her parents were dining in a nearby tapas restaurant with friends, but were making regular checks on their three children.
Heart doctor Gerry, 51, and former GP Kate, 52, who live in Rothley, Leics., have never lost hope that their daughter could still be alive.
Maddie would now be almost 17.
The Sun Online revealed last month that police had requested extra cash.
FAMILY STILL HAS HOPE Detectives put in a formal bid to the Home Office for funding to continue when the current amount runs out on March 31.
A source said: "There is still work left to be done on this inquiry and we are anticipating our new funding request will be approved."
The operation launched in May 2011 on the orders of then Prime Minister David Cameron.
There were concerns it could be shelved because of the demands placed on policing by the coronavirus.
Mr Mitchell said the McCanns "never take for granted" that further funding will be automatically approved.
However, he said they have "not been advised that the inquiry is coming to an end".