Real Madrid are ready to open new contract talks with Pepe.
The Portugal defender's form at the World Cup has convinced Real of his fitness and they're ready to discuss new terms.
Real are drawing up a long-term offer worth €2.8 million-a-year, while Pepe's agents have indicated he wants €5 million-a-year.
For the moment, the defender's current deal runs to 2012 and is worth €1.8 million-a-year.
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