Manchester City's new manager Manuel Pellegrini has been eyeing Portugal star Pepe to strengthen his team's defence, but after his £16 million offer was rejected by Real Madrid, a showdown between the two clubs is on the cards.
According to a report on Daily Star, bosses at Real want the bid to be increased to £24 million; however, City are unwilling to pay that much for a defender who his already 30.
This, though, is not the first clash between the two big-spending European clubs in the transfer season. Real have outdone City over the signing of Isco, while the battle to get Napoli's Edinson Cavani is still raging. But according to the report, City have pulled out of the race to sign Cavani - with City manager Pellegrini cutting down his list of shortlisted replacements for Carlos Tevez to three.
Bayern Munich's Mario Gomez, Benfica's Oscar Cardozo and Alvaro Negredo from Seville are now reportedly on City radar after Tevez moved to Juventus. The report suggested Cardozo, who wants to leave Benfica after his fallout with manager Joge Jesus, is on top of Pelegrini's list.
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