The Los Blancos are weighing up a move for Bayern Munich defender Jerome Boateng.
The Germany international is under consideration at Real as they seek an experienced centre-half signing this summer.
With Pepe to leave when his contract expires in June, Boateng is under consideration as a replacement.
Boateng has played just 20 games for Munich this season.
Kicker says an offer of €40 million is being prepared for Bayern to consider.
However, they are under no pressure to sell as he is contracted to the club until 2021.