Real Madrid to hand Pepe new deal

Spanish newspaper Marca said on Friday that Pepe’s agent, Jorge Mendes, has held talks with Real Madrid club director, Jorge Valdanon, over a new deal.

Pepe is currently out with a knee injury that will see him miss the rest of the season.

The new deal would see Pepe earn €5million per season and will keep him with Los Blancos until 2015.