Real Madrid could try to sign Manchester City defender Nicolas Otamendi as a replacement for Pepe if he leaves the Bernabeu at the end of the season, the player's agent has claimed.
Otamendi's agent, Martin Sendoa, also said Barcelona have a long-term interest in the Argentina international.
Sendoa stressed that Otamendi is happy with the Premier League club but says any player would be tempted by a move to the European champions.
He told Radio Continental: "Pepe is leaving Real Madrid and Otamendi fits the profile they are looking for.
"Jorge Mendes [Cristiano Ronaldo's agent] is also managing Otamendi in Europe."
Spanish newspaper La Vanguardia quoted Sendoa as saying: "Barcelona have also followed him since he was at Valencia.
"Nico is happy at Manchester City. But who wouldn't like to play at Real Madrid? It's the biggest club in the world."
Centre-back Pepe, who turns 34 on Feb. 26, is out of contract this summer and has been linked with a lucrative free transfer to China.
Real coach Zinedine Zidane has said he is hoping the Portugal international stays beyond the summer but needs to start considering replacements if he does not agree a new deal.
Otamendi is one option after he impressed at Valencia in La Liga before completing a £31.5 million move to the Etihad in August 2015.
The 29-year-old, who has struggled at times during his two seasons at City, will have three years remaining on his current City contract at the end of the season.
Adriana Garcia also contributed to this report.