Manchester City are monitoring Pepe’s situation at Real Madrid.
The Portugal international is inside the final two years of his Real deal and Fichajes.comreports there are no plans to offer the stopper new terms.
City boss Manuel Pellegrini worked with Pepe while coach of Real and sees him as a successor for Martin Demichelis.
Argentine veteran Demichelis is inside the final year of his City deal and could be allowed to leave the Etihad over the summer.
At Real, management see Raphael Varane as the natural replacement for Pepe, with the view to selling the experienced defender at the end of this season.