Real Madrid have stepped up new contract talks with defender Pepe in recent days.
Aware of growing interest from England, where Chelsea andManchester City have been joined byManchester United in tracking developments, Real officials have intensified negotiations with Pepe's agent, Jorge Mendes.
Sport says Real are closer to Pepe's new contract demands, with their latest offer being €3 million-a-year plus another €2 million-a-year in bonuses based on success and appearances.
Pepe has been demanding to be placed among the club's top earners at €6 million-a-year for almost 18 months.
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