Real Madrid coach Jose Mourinho is hopeful that defender Pepe will commit his future to the Primera Liga giants in the next few weeks.
The Portuguese boss has maintained that he sees the former Porto stalwart as a key member of his squad.
The 27-year-old has also expressed his desire to remain at the Santiago Bernabeu despite difficult negotiations surrounding his contract.
Pepe's current deal expires in 2012 and Madrid are willing to offer him a three-year extension.
However, the player has demanded a wage increase as he is currently one of the lowest earners on Madrid's list.
The centre-back has reportedly demanded £85,000 a week while Madrid are only prepared to pay up to £60,000.
Both Chelsea and Barcelona have expressed an interest in the Portugal international, however, Mourinho is anxious to secure the future of his fellow countryman as soon as possible.
He said: "Real Madrid are trying not to lose, and Pepe cannot be lost by Real Madrid.
"The club know. In a few weeks I will fix everything and Pepe will stay here."