Real Madrid GM Valdano confident Pepe will agree new terms

Real Madrid management are confident of securing defender Pepe to a new deal.

Real GM Jorge Valdano said they were "optimistic" about agreeing a new contract with Pepe.

The Portugal international's current deal runs out in 2012 and he has been linked with a move away from the Bernabeu.

But Valdano said following the win over Atletico: "Pepe is one of the best centre-backs in the world and we are optimistic about his renewal."