Pepe's future at Real Madrid is tied directly to coach Jose Mourinho.
Despite his on-field controversies under Mourinho, the Real coach has always insisted to club chiefs that the defender must stay.
Real president Florentino Perez, while unhappy with the image Pepe generates for the club, has always given Mourinho full control of football matters.
However, Sport says should Mourinho quit Real in the summer, Perez will again take charge of transfer policy and immediately seek to sell Pepe.