Manchester City are launching a bid for Real Madrid defender Pepe.

AS says City are making a €25 million offer for Pepe, who played for new Sky Blues manager Manuel Pellegrini at Real.

Real were not planning to sell Pepe this summer, but the size of City's bid and the emergence of Raphael Varane has forced a rethink.

The decision by former Barcelona chiefs Ferran Soriano and Txiki Begiristain for City to go for Pepe will not go down well in their hometown, where the Portuguese is all but despised by Barca fans.