Experienced Real Madrid centre-back Pepe will reportedly join Hebei China Fortune on a free transfer at the end of the 2016-17 campaign.
The 33-year-old only has six months left to run on his current contract at the Bernabeu and it is widely thought that he will seek pastures new in June.
Manchester United have been linked with a move for the Portugal international, but according to Cadena Cope, Chinese Super League side Hebei China Fortune have won the race for his signature.
The same report claims that Pepe, who is believed to have wanted a new two-year deal at Real Madrid rather than a 12-month extension, will triple his current salary when he makes the move to China.
Hebei China Fortune are currently managed by former Real Madrid boss Manuel Pellegrini and already have the likes of Ezequiel Lavezzi and Gervinho in their ranks.