Real Madrid have reached an agreement to sign Porto centre-back Pepe on a five-year contract, the Spanish champions said on Tuesday.
|Benfica's Fabrizio Miccioli of Italy fights for the ball with Porto's Kepler Lima "Pepe" of Brazil|
Portuguese sports daily O Jogo said Real would pay 28 million euros ($38.21 million) for the 24-year-old Brazilian-born player.
Pepe is the second centre-back the club have signed in the close season with German international Christoph Metzelder due to be presented this week.
Real's move for Pepe could signal the end of attempts to sign Romania defender Cristian Chivu from AS Roma, with Fabio Cannavaro and Metzelder already lined up for next season.
Real have moved quickly for Pepe having unveiled Bernd Schuster as their new coach on Monday.
A tall and pacy defender, Pepe joined Porto from Maritimo in 2004 and won a league and cup double with them in 2006. He picked up a second league title with Porto last season.