Football.London says Pepe has changed agents and instructed his representative to find him a new club. That eventuality would suit Arsenal, who are happy to entertain offers for Pepe, who is deemed expendable by manager Mikel Arteta and sporting director Edu after contributing 27 goals and 20 assists in 111 appearances altogether for the club.
Pepe's reduced standing at Arsenal has become increasingly clear in recent weeks following two poor performances.
First he was reprimanded by Gunners coach Albert Stuivenberg for surrendering possession dangerously in the closing stages of the 2-1 win over Leeds, before putting in another lacklustre display off the bench in the 2-0 defeat by Newcastle on Monday.
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