Inter Milan are reportedly the favourites to sign Real Madrid centre-back Pepe this summer.
The 34-year-old, who has been strongly linked with a move to China, will see his current Real Madrid contract expire at the end of June.
It is understood that both Madrid and Pepe have decided to part ways this summer, and the Portuguese international had been expected to leave European football to move to the super-rich Chinese Super League.
Earlier this month, it was claimed that Paris Saint-Germain had won the race for his signature, but according to AS, Inter are now the favourites to sign the experienced Portugal international on a free transfer.
Pepe, who has won two league titles and two Champions League crowns during his time at the Bernabeu, only started 13 La Liga matches for Los Blancos during the 2016-17 season.