Chelsea are closing in on Raphael Varane after it emerged that Real Madrid are looking to tie down Pepe.
France international Varane, 21, is on the outer at the Santiago Bernabeu having made just 13 La Liga starts this season under Carlo Ancelotti.
The Mirror suggests that Real have offered 32-year old Portugal star Pepe an extension until the summer of 2017 meaning Varane is likely to remain on Ancelotti's subs bench for the foreseeable future.
Chelsea are likely to hand captain John Terry a new 12-month deal to remain at Stamford Bridge but Jose Mourinho is reportedly still keen on Varane who would only strengthen the current crop of centre-backs including Gary Cahill and Kurt Zouma.
