Real Madrid Transfer News: Latest on Pepe and Timothy Tillman Rumours

AC Milan are reportedly monitoring Real Madrid's Pepe with the intention of landing the defender for free when his contract expires next June. Elsewhere, Bayern Munich starlet Timothy Tillman is said to be attracting Los Blancos' attention.

According to Spanish newspaper AS, Real are "prepared to let Pepe leave" the club for nothing when his deal runs out at the end of this season, and Milan are looking to snatch his signature, according to Calciomercatoweb.it (h/t Football Italia).

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Italian outlet Calciomercato.com added that Real are ready to place more faith in the form of Raphael Varane, a long-term fringe star due to Pepe's presence.

Pepe turns 34 next February and is enjoying his 10th season at the Santiago Bernabeu, but Tomas Roncero of AS stated his belief that to let the player leave now would be folly:

Part of that argument is due to the fact Los Merengues are scheduled to see out a transfer embargo over the course of 2017, an order that would prevent them from registering any new players until January 2018.

As a result, the club must examine their expiring contracts carefully, and ESPN FC's Dermot Corrigan recently hinted Varane may not be up to the task of replacing his mentor just yet:

The France international has spent the last few years of his Real Madrid development mostly playing third fiddle to Pepe and Sergio Ramos, although manager Zinedine Zidane may be ready to put his trust in his countryman.

Varane was partly to blame for one of the goals Los Merengues conceded during Tuesday's 2-2 draw at Borussia Dortmund in the UEFA Champions League, although Zidane hasn't lost faith, per Bleacher Report's Rik Sharma:

Milan have been known to show more acceptance for signing players over the age of 30, and the Italians would be recruiting Pepe with full knowledge the player might only last several years in Serie A.

That being said, after winning UEFA Euro 2016 earlier this year, not to mention the Champions League, the Portugal centre-back could be ready to subvert the stereotype relating to age in football. Broadcaster Deji Kofi Faremi agreed the veteran could still be a superior option to Varane:

Meanwhile, Real Madrid scouted Bayern Munich playmaker Tillman when the 17-year-old starred in a recent 3-1 win over Atletico Madrid in the UEFA Youth League, per Jose Felix Diaz of Spanish daily Marca.

Tillman scored in the European victory to leave his impression on those in attendance, while Diaz mentioned Los Blancos are also interested in Borussia Dortmund youngster Ousmane Dembele.