Chelsea are lining up a bid for Real Madrid defender Pepe. The Blues may be willing to wait two years to snare the Portugal centre half on a free transfer.

The 27-year-old is struggling to agree a new deal at the Bernabeu and has even been linked with a shock move to Barcelona in recent days.

Well-connected Spanish radio station Cadena Ser claims Chelsea have also been in touch with the former Porto player's representatives about a generous offer for when his current deal runs out in 2012.

Pepe is reported to have been offered £60,000 a week but is demanding an extra £25,000, which suitors may be willing to pay if he comes on a free.