Pepe to sign new Real Madrid deal?

Pepe will reportedly sign a contract extension with Real Madrid in the near future.

The 32-year-old's current deal at the Bernabeu is due to expire in the summer of 2016, which had resulted in speculation that he could leave the club at the end of the season.

However, according to Spanish publication AS, the centre-back is on the verge of committing his future to the European champions until 2018.

The report adds that news of Pepe's likely stay may result in fellow defender Raphael Varane moving on to gain regular starting action elsewhere.