Real Madrid have earmarked Borussia Dortmund defender Sokratis as a potential replacement for Pepe, according to Bild, via AS.
Pepe’s current deal is due to expire at the end of the season and the veteran defender is no closer to renewing terms with the reigning European champions.
The 33-year-old has spent the last nine years with Madrid but has finally lost his place in the team to emerging France international Raphael Varane and will be free to talk to non-Spanish sides in January when he officially enters the final six months of his existing deal.
As a result, Madrid are now considering alternatives to the Portugal international if they fail to resolve his future and are interested signing Dortmund defender Sokratis as a potential replacement.
Madrid are still technically unable to make new signings until 2018 unless their appeal against a FIFA transfer ban is accepted by the Court of Arbitration of Sport.
Sokratis has spent the last four seasons with Dortmund and has made at least 44 more tackles than any other teammate in the Bundesliga in that time (211).
For more stats on Sokratis, click here to visit his WhoScored player page