Real Madrid are said to be targeting Inter defender Joao Miranda as a replacement for Pepe.
The 31-year-old Brazilian has been a revelation this season since arriving from Atletico Madrid.
According to Spanish newspaper As, Real Madrid directors see Miranda as the ideal heir to Pepe in the back four.
Pepe has already turned 33 and his contract is due to expire at the end of the season.
However, any deal for Miranda would have to include talks with Atletico Madrid.
He arrived in a complicated deal, technically a two-year loan worth €4m, but with mandatory option to buy in July 2017 for another €11m.