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Pepe is set to sign a contract extension with Real Madrid, at least according to As. This extension would keep him in the club until 2018.
According to As, Pepe is going to sign an extension with Real Madrid imminently.
— Lucas Navarrete (@LucasNavarreteM) March 28, 2015
Pepe's contract expires in 2016, and even though the club's intention was to offer him an additional year, both parts have finally agreed a new two-year deal. If this happens, Pepe, who is 32 years old now, would finish his new contract being 35.
Most fans expect Raphaël Varane to take over Pepe's spot soon, but the truth is that the French defender has not performed well during Ramos' absence. Furthermore, Pepe and Ramos' chemistry is great, so Pepe will most likely be the team's starter until he shows an evident drop in form. Varane will have to wait a bit longer to be a starter for Real Madrid.