Real Madrid are expected to announce new contracts for Pepe and Sergio Ramos at the end of the season.
AS says Pepe has agreed a new four-year deal with Real, while fellow defender Ramos is on the brink of signing a six-year agreement.
Both deals were pushed by coach Jose Mourinho, which suggests he intends to stay long-term with Real.
Pepe's salary will jump from €1.8 million to €3.8 million, while Ramos' wages are raised from €3.5 million-a-year to €4.5 million-a-year.
