The Portugal defender has interest from numerous clubs, including the Ligue 1 giants, as he confirmed his departure from the Bernabeu
Portugal defender Pepe confirmed he was leaving Real Madrid, but insisted he was yet to agree to a deal with Paris Saint-Germain.
Pepe, 34, is out of contract at the end of the month and wanted a two-year deal at Madrid.
But, after being offered just a one-year extension, he has decided to move on from the club he joined from Porto in 2007.
"It is clear that I will not continue at Real Madrid," he told Cope.