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Transfer news: Real Madrid cancel contract talks with reported Manchester City target Pepe

Pepe's future remains up in the air after a meeting regarding a potential new contract at Real Madrid was cancelled.

The Portuguese stalwart, who has been at the club for a decade, is out of contract in the summer and could walk away as a free agent.

At 34 years old, the centre-back wants to sign a two-year extension at the Bernabeu but Madrid are so far only willing to offer him a one-year deal.

Despite pressure from the club's fans, who are desperate for Pepe to stay, Madrid seem no closer to handing him the terms he desires.