Premier League giants remain keen on Portuguese defender.
Manchester City are ready to step up their interest in Real Madrid defender Pepe according to The Daily Mail.
The club were strongly linked with a move for the no-nonsense centre-back last month but a move reportedly broke down after City refused to meet Real’s asking price.
But after having found themselves frustrated elsewhere in the transfer market, City are ready to return to the Spanish giants with an improved offer.
Pepe is widely regarded as having been one of the best defenders in Europe over the past few seasons and has been an integral part of the Real Madrid team for a number of years.
But his position in the club’s starting eleven has recently come under threat, following the emergence of young French defender Raphael Varane.
Varane is tipped to have a bright future in the club and his early breakthrough could spell the end of Pepe’s Real Madrid career.
New Real Madrid boss Carlo Ancelotti has been told he must sell some of his squad in order to help finance some new acquisitions and that could pave the way for Pepe to arrive in the Premier League.
Should he arrive at City, he will face competition from Joleon Lescott, who has been handed a one year contract extension by Manuel Pellegrini.