Reports in Spain in recent days have claimed that new Chelsea boss Andre Villas-Boas wants to make 28-year-old Pepe his first signing at Stamford Bridge following speculation that the Spanish giants will be forced to sell the centre-back this summer.
Pepe has twelve months left on his existing deal at the Bernabeu and coach Jose Mourinho wants him to put pen-to-paper on a new deal.
Chelsea are believed to be ready to offer the Portugal international €5million a year to move to west London, while Real's new contract offer is worth somewhere closer to €4m a year.
Los Blancos know that they will be left with little choice but to sell him this summer should he not agree to stay at the club, if they are to avoid losing him on a free transfer this time next year. And according to Marca, a move to the Premier League club could happen.
The interest in Pepe, as well as recent interest in Bolton defender Gary Cahill and Birmingham centre-back Scott Dann, has led to speculation about the future of Alex, and according to Sport1, the defender could be on his way to Bayern Munich.
The German giants have turned their attention to the Chelsea defender after losing patience with Manchester City over a deal for Jerome Boateng, with the two sides unable to agree a fee.
And with John Terry and David Luiz already ahead of Alex in the pecking order at Chelsea, it is believed that a sale is a possibility - especially if Pepe leaves the Spanish capital and moves to England.
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