Real Madrid's Portuguese international Pepe has agreed a contract extension until June 2015, sports daily Marca reported Monday.
The 28-year-old defender, who joined Real from Oporto in 2007 for €30m after helping the Portuguese side win back-to-back league titles, will sign the new contract before the end of the season, the newspaper said. His current contract with Real ends in June 2012.
Under the new deal Brazilian-born Pepe will earn around €4m annually, up from €1.8m, according to Marca.
Pepe moved to Oporto from CS Maritimo in 2004 after three successful seasons with the Madeira club which he joined from third division SC Corinthians Alagoano in Brazil.