Report: Pepe to sign new Real Madrid deal

Real Madrid centre-back Pepe is reportedly close to signing a new one-year contract extension.

The Portuguese international's current deal is due to expire next summer and it had been claimed that he could be available for transfer in this window.

According to AS, however, the 32-year-old, who has been with Los Blancos since 2007, will pen a new deal until the summer of 2017.

Despite the reported new deal, it is understood that Pepe faces a battle to secure a starting spot at the Bernabeu this season, with Sergio Ramos and Raphael Varane believed to be Rafael Benitez's chosen starting pair in central defence.

Manchester United have been linked with a move for Pepe this summer.