Hebei China Fortune are reportedly at the head of the queue for Real Madrid centre-back Pepe.
The 33-year-old, who remains a key figure at the Bernabeu, is approaching the final six months of his deal with Los Blancos and will be free to discuss terms with foreign clubs in the January transfer window.
It is understood that the Portuguese international is looking for a two-year extension, but Real Madrid are only prepared to offer a new 12-month deal, which has led to a breakdown in talks.
Speculation linking the defender with a move to the Chinese Super League gathered pace earlier this week and according to reports in Spain, Hebei China Fortune are showing the strongest interest.
The Chinese club are currently managed by former Man City boss Manuel Pellegrini and have already signed the likes of Gael Kakuta, Stephane Mbia, Gervinho and Ezequiel Lavezzi.
