Real Madrid Transfer News: Pepe Linked with Manchester City, PSG, Latest Rumours

Real Madrid defender Pepe has reportedly turned down a €12 million annual salary at Hebei China Fortune in light of reported interest from Manchester City and Paris Saint-Germain. 

Per Marca's Roberto Gomez (adapted by Marc Mayo), Pepe will leave Los Blancos this summer when his contract ends, and both City boss Pep Guardiola and PSG counterpart Unai Emery have been in touch with his agent Jorge Mendes in the hopes of convincing the defender to join them.

Turkish newspaper Fanatik (h/t AS) also reported Galatasaray want the 34-year-old and have made contact with him over a deal.

Pepe is hoping to sign a two-year deal, but with Real only prepared to give him one year he looks set to move on.

Remaining in Europe would allow him to continue competing in the UEFA Champions League—albeit it is less assured in Galatasaray's case—and give him a much better chance of playing for Portugal in the 2018 FIFA World Cup.

The trio are all said to be happy to hand him a two-year contract, with the Turkish outfit also offering him €4 million a year, and the talks they've had with him are described as "highly positive."

Pepe has been in and out of the team with injuries this season and made just 17 appearances in all competitions, with 12 coming in La Liga.

Here's a look at his numbers for the campaign, courtesy of Squawka:

Apps	12
Tackles	9
Headed Duels	37
Interceptions	17
Clearances	64
Passing Accuracy	84%

Only three teams have conceded fewer than City's 32 in the Premier League—Chelsea, Tottenham Hotspur and Manchester United—but it's clear they need more reinforcements at the back this summer.

Vincent Kompany is no longer reliable because of his inability to keep fit, Nicolas Otamendi hasn't quite been the dominating force he was at Valencia and John Stones is still somewhat error-prone.

Football journalist Rafael Hernandez was among many critical of the Sky Blues' showing at the back against Arsenal on Sunday:

As for PSG, they've conceded just 21 goals in 30 Ligue 1 games this season and between Thiago Silva, Presnel Kimpembe and Marquinhos they're equipped to deal with other French sides comfortably.

However, there are real question marks over their ability to compete in the latter stages of the Champions League, as their recent 6-1 collapse against Barcelona confirmed.

Goal's Robin Bairner and Mohammed Ali criticised Silva in particular for his part in their capitulation:

Pep may be firmly entering the twilight years of his career, he's certainly a player for the big occasion—last year he helped Real win the Champions League final and Portugal in the UEFA Euro 2016 final.

On a free transfer, he could well prove to be a shrewd addition for City, PSG or Galatasaray.