The Portuguese international signed a one-year extension which will keep him tied to the Santiago Bernabeu club until June 2017.
Real Madrid defender Pepe has committed himself to the club by signing a contract that will expire in 2017.
The Portugal international had entered the final year of his deal and, after Sergio Ramos penned an extension earlier this week, the club has moved to tie down another long-term player.
Pepe, who joined the Santiago Bernabeu side from Porto in 2007, remains a key part of the side, having featured in 27 Liga games last term.