Chelsea are ready to pounce for Real Madrid defender Pepe.

Pepe is locked in a contract dispute with the Spanish giants, opening the door to a potential Chelsea switch.

The Portugal international is out of contract at the end of the season and can talks to clubs from January 1.

Real Madrid are only willing to offer the 33-year-old a one-year extension, but Pepe is looking for more.

Pepe said last night: "I hope that the club calls me first to resolve the situation. I'm relaxed, the people at the club know that this is my home. As I have said before, I will wait until the last second for Madrid."