Pepe is set to end speculation linking him with Chelsea by penning a new contract at Real Madrid.
The 33-year-old is currently inside the final year of his contract and can walk away from the Bernabeu for nothing in the summer.
It has been reported that the Portuguese is seeking a new challenge and that Chelsea were keen on handing him a crack at English football.
However, according to Marca, Pepe is now close to agreeing an extension at Real Madrid, which would probably see him end his career with them.