Manchester City are ready to take their summer spending to £114million with a £22m swoop for Real Madrid centre-back Pepe, The Daily Star reports.

The Portugal defender is available at £30m but City will not pay that for the defender, 30.

The Premier League’s biggest spenders in this transfer window are prepared to pay £22m.

New boss Manuel Pellegrini wants more Champions League know-how in his squad after City’s failure in the competition in the last two seasons.

If the deal goes through Real could use the cash to make a bid for Liverpool’s Luis Suarez.

It would help them get nearer to Liverpool’s valuation of £40m – though they have indicated they are not prepared to pay more than £25m.

City have already signed midfielder Fernandinho for £30m, winger Jesus Navas (£15.8m) and strikers Alvaro Negredo (£20.6m) and Stevan Jovetic (£25.8m).