Pepe close to penning new Madrid contract

Real Madrid defender Pepe is close to signing a contract extension at the Santiago Bernabeu, according to AS. The Portuguese defender's contract runs until the summer of 2016 but his new deal will see him remain in the Spanish capital until 2018. At 32, it could see him see out his playing days in the Spanish capital. AS reports that the club had offered him a new one-year deal but Pepe wanted a longer contract and a two-year extension has been agreed. The Portugal international has enjoyed one of his best season's since joining Madrid this season, being arguably Carlo Ancelotti's strongest centre-back this term. The deal will be announced imminently, according to the report, and will fend off interest from club's including Manchester City, who had previously been linked with a move for the centre-back. Sergio Ramos has yet to pen a deal at the club and his future could be the net on the agenda.