Pepe has piqued the interest of Manchester United and Manchester City
The Real Madrid centre half has been coveted in the past by Chelsea, with Jose Mourinho an admirer.
United haven't made it a secret they are in the market for a new centre half, with £47m rated Borussia Dortmund centre half Mats Hummels and Aston Villa's Ron Vlaar on their wish list.
According to Spanish paper Marca, there is an air of mystery surrounding Pepe's future at the Bernabeu.
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They claim that Los Blancos are yet to offer him a fresh contract which has alerted United and City.
It is thought that United and City are both waiting in the wings should a new deal not be forthcoming.
Pepe, who has around two years left to run on his current deal, has clocked up 21 appearances for club and country this season.
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