Real Madrid and Chelsea are in swap talks over their defenders.
A Bola says Real president Florentino Perez wants to offload Pepe at the end of the season, fed-up with the controversy that has followed the Portugal international in recent seasons.
Florentino is eager to set up a swap deal with Chelsea, which would see Pepe move to London in exchange for David Luiz.
Pepe is regarded highly by Chelsea boss Andre Villas-Boas, who has seen Luiz struggle in his system this season.