Man City set to up bid for Real Madrid defender Pepe

Manchester City are lining up a new bid for Real Madrid defender Pepe.

The Daily Mail says City have had a £15m bid rejected by Madrid, whose new boss Carlo Ancelotti is keen to keep the Portugal centre back. He is set to lose Raul Albiol to Napoli.

But Ancelotti has been told he must sell to help finance new signings and City must decide whether to raise their offer nearer £20m for a player who turned 30 this year.

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