The Real Madrid defender has been working his way back from a serious knee injury suffered against Valencia on 12 December. But he passed a fitness test with the national team ahead of today's squad announcement and joins club colleague Cristiano Ronaldo in the party.
Pepe's inclusion means there is no place in the squad for Deportivo La Coruna defender Ze Castro, who was the one name cut from the 24-man party originally named by coach Carlos Queiroz.
Portugal squad: Eduardo (Braga), Beto (Porto), Daniel Fernandes (Iraklis); Duda (Malaga), Bruno Alves (Porto), Paulo Ferreira (Chelsea), Miguel (Valencia), Ricardo Carvalho (Chelsea), Rolando (Porto), Fabio Coentrao (Benfica), Pepe (Real Madrid), Ricardo Costa (Lille); Deco (Chelsea), Tiago (Atletico Madrid), Raul Meireles (Porto), Pedro Mendes (Sporting Lisbon), Miguel Veloso (Sporting Lisbon); Nani (Manchester United), Simao Sabrosa (Atletico Madrid), Cristiano Ronaldo (Real Madrid), Hugo Almeida (Werder Bremen), Danny (Zenit St Petersburg), Liedson (Sporting Lisbon)
*Please note that squad lists only become official after they have been submitted to and announced by FIFA.