Real Madrid are interested in Gremio winger Pepe.

Marca says Real see Pepe as potential competition for Vinicius Junior.

Real director Juni Calafat has been holding talks with Gremio about a deal for Pepe.

However, Porto are regarded as favourites for the 23 year-old winger.

Porto are offering €15m for Pepe, while Gremio are seeking €20m to sell the youngster.