New City boss Manuel Pellegrini is keen to bring in a new centre back, as Matija Nastasic will be out of action for the first month of the new season with an ankle injury.
City had a £15million bid for Pepe rejected last month and Real Madrid are keen to keep the Portugal international.
The Daily Mail reports that City are set to make a final attempt at signing Pepe before the start of the new season.
City plan to make a bid of around £20million and director of football Txiki Begiristain has flown to Madrid for talks with the Spanish side.
What is your opinion? Feel free to discuss the article under. You have to comment by using your Facebook profile. Be fair and have respect for other people and opinions!
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.
Five English clubs will compete in the last sixteen of the Champions League for the first time ever as Liverpool, Manchester United, Manchester City, Chelsea and Tottenham face some difficult away matches.