Inter Milan have tabled a bid for wantaway Real Madrid attacker James Rodriguez.
Sportitalia says Inter have offered €42 million for the Colombia captain.
Real are in the mood to do business over James, who has found playing time in the Spanish capital at a premium since Zinedine Zidane took over as manager.
Pepe is also involved in the potential deal and will be a free agent when his contract expires in June.
Jorge Mendes represents both players and Inter have a two-year contract offer on the table for Pepe, but it is expected that the Serie A club will take both players or neither.