Tough-tackling Portuguese is said to be unwanted by Real.
Real Madrid are desperate to offload controversial defender Pepe to Manchester City this summer in order to help fund a big-money move for Tottenham Hotspur wide man Gareth Bale, reports the Daily Mirror.
The rugged Portugal international has been at the Santiago Bernabeu for six years now, having signed for los Blancos from FC Porto for 30 million euros in July 2007.
And in the intervening six-year period, the experienced centre back has featured in 138 Liga contests, scoring four goals, while overall the player has made 199 appearances for the Spanish giants, netting five times in the process.
However, it is understood that the Madrid hierarchy are now keen to sell the 30-year-old, whose contract in the Spanish capital runs until June 30 2016, to City for £20m when the transfer window reopens for business on July 1.
But, whether new City head coach Manuel Pellegrini is quite so interested in the transfer happening is a moot point entirely.