REAL MADRID defender Pepe will sign a new contract with Real Madrid which will keep him in the Spanish capital for two more years.
The Portugal international has been linked with Manchester United and it was thought a deal might be allowed to happen as the club are reportedly keen to add a new defender.
However, Spanish publication AS claim the La Liga giants were keen to avoid another Sergio Ramos-like saga.
Ramos appears ready to follow Pepe's lead and commit to the club despite intense speculation linking him with a move to Old Trafford all summer.
Pepe's current deal expires at the end of the season and the 32-year-old would be free to speak with other clubs in January unless an extension is agreed.
Real have already lost German midfielder Sami Khedira to Juventus on a free transfer and do not want to risk losing another player for nothing.
United could now turn their attention to Valencia's Nicolas Otamendi after Spanish football expert Graham Hunter revealed he is interested in a move the Premier League giants.
They are also thought to be keen on Tottenham's Harry Kane in a bid to bolster their attacking options and remain close to completing a deal for Barcelona winger Pedro.
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