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Real Madrid Transfer News: Latest Rumours on James Rodriguez and Pepe

Real Madrid star Pepe has reportedly agreed to a new contract with Los Blancos, snubbing the likes of Chelsea and Manchester City in the process, while James Rodriguez is said to be looking for a January exit.

According to John Cross of the Daily Mirror, an official announcement of a new, two-year contract for Pepe should arrive shortly, with the veteran agreeing to the new deal. Real have been locking up some of their top players to new deals in recent weeks, with the likes of Gareth Bale and Cristiano Ronaldo pledging their allegiance to the club.