Real Madrid have failed to step up talks with Pepe over a new deal. Sport says Real have left Pepe and his representatives hanging and the defender is now set to sound out interested clubs across Europe.
Pepe would prefer to remain with Real, but his wage demands are proving too steep for management consider.
Meanwhile, Pepe was blasted by Valencia striker Roberto Soldado after Saturday's win.
Soldado was unimpressed by Pepe's behaviour and rapped: "I do not understand his behavior, he has been a bad sport."
