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Portugal international will pen a one-year contract with Paris Saint-Germain once his deal with Real Madrid expires at the end of the month.
The 34-year-old was often left on the substitutes' bench last season, and this made him decline a probable extension with the La Liga and European champions.
Spanish outlet Marca claims that the Euro 2016 winner will sign a one-year contract at Parc des Princes with the option of a further year, should he impress.
The former Porto man was initially expecting a lengthier contract on the table before new sporting director Antero Henrique intervened in the agreement.
Pepe has bagged 11 major honours with Real Madrid for whom he has represented 334 times across all competitions.
The central defender was initially tipped for a reunion with Jose Mourinho at Manchester United, but the Special One has opted to recruit a youthful option in Victor Lindelof to his ranks.
Pepe is currently with the Portuguese national team in Russia where they take on Mexico in their Confederations Cup opener.
Written by Sri Aswin
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