Pepe offered new Real Madrid deal amid Man Utd, Chelsea interest

Real Madrid have offered a fresh contract to defender Pepe with Manchester United and Chelsea on hunt for his services. The 33-year-old has just 10 months on his existing deal at the Bernabeu.

The centre-half was part of the Portugal squad this summer that went on to beat France in the finals and lift the Euro 2016 crown, the first major trophy in the nation's history.

Spanish source MARCA says talks are underway between the player's representatives and Los Blancos as they seek to find a quick resolution over the defender's future.

United boss Jose Mourinho held a fruitful relationship with Pepe in his time at Real, and it is thought that he would consider a cut-price deal for his signature in the New Year.

Meanwhile, Chelsea coach Antonio Conte was not happy with the transfer business over the summer, and he is still on the search for an experienced centre-half who could take on the role of a 'John Terry' at Stamford Bridge.

Terry is unlikely to be offered a new contract at the end of the campaign with Conte prepared to move on with a revolution of his own.