Manchester United are eyeing Real Madrid veteran Pepe.

The defender's current deal expires in June.

Calciomercato.com says Jose Mourinho is thought to be concerned with his side's defensive woes of late.

Pepe is in his sights, having worked with the defender during his time at Real.

However, Chelsea are also in contact with Pepe.

He will be able to talk to and sign a pre-contract with foreign clubs from January 1 and that could lead to a transfer battle between Chelsea and Manchester United in the New Year.