Pepe will play in China next season as he has not reached an agreement to extend his contract with Real Madrid, according to MARCA.
This is his tenth season with the club, but signing him to an extension has not been a priority for Madrid now that Varane seems ready to be a starter week in a week out. Furthermore, Jesus Vallejo has completed some surprising performances on loan with Eintrach Frankfurt, proving that he could be Real's third central-defender next year.
Pepe still has to make a decision on his future because he wants to play in the 2018 FIFA World Cup, something that could be quite difficult for him if he's playing in China. That's the reason why he is still waiting to see if Madrid decide to send him an offer.
The Portuguese defender will turn 34 years old next February and has undoubtedly entered his decline.