I'm pretty sure madrid will start phasing out Pepe at the end of this season..
Varane openly says that hes very happy with Real and Ancelotti, so seeminlgy even now he plays often enough. Besides, hes very intelligent and clear headed player, why would he leave to a weaker team? And like you said, Pepe is not getting any younger.
Plus, Mou himself admitted that even though he would like to have him in his team, getting him from Real is simply impossible.
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