Real Madrid have confirmed that defender Pepe has put pen to paper on a contract that will keep the player at the Bernabeu until the summer of 2017.
There were rumours that the Portugal international could be made available for transfer this summer as he had just one year remaining on his previous deal.
However, Madrid have shown that the 32-year-old remains in the club's plans as he has officially extended his contract by one year.
Pepe moved to the Spanish capital from Porto in 2007.