Manchester City are willing to stump up €30 million to land Pepe, according to The Daily Star. The club's coach, Manuel Pellegrini, is keen on bringing in the Portuguese international to partner Belgian stalwart Vincent Kompany at the heart of defence.

After Porto stopper Eliaquim Mangala snubbed City by expressing his preference for a move to Manchester United or Chelsea, Pellegrini has been forced to rethink his transfer strategy and has set his sights on his former club, Real Madrid. The Chilean knows Pepe from his season in charge at the Bernabéu, although it so happens that the Portuguese defender suffered a serious knee injury that limited his impact that campaign.