The negotiations for Pepe's contract renovation have stopped. The player's contract expires in June 2017 and he could start holding talks with other clubs in January. Nevertheless, he doesn't want to leave the Spanish giants.
Pepe doesn't know, if he has a future at Real Madird. The giants aren't showing they want to stay him longer at the club.
Zidane has already several names on his mind, if the Portuguese should decide to leave the club. Varane and Diego Llorento are two players who are on the Frenchman's list and could substitute Pepe.
If Madrid decide to renew his contract, it would be the third extension, since he arrived in 2007.