The former Porto man is of the opinion that the attacker will renew his deal with los Blancos, but is unaware as to whether the coach will follow suit
The former Manchester United attacker is rumoured to have grown unhappy with life at the Bernabeu, and has been recently linked with a move to Ligue 1 giants Paris Saint-Germain.
The French side are also reportedly interested in Mourinho, who is enduring a difficult period at Real Madrid as his team find themselves in third place in La Liga, 16 points off arch-rivals and table-toppers Barcelona.
"Cristiano is happy at Real Madrid and focused on helping the team. I'm sure he'll extend his contract," Pepe said in an interview with Grande Area.
"However, I'm not sure what Mourinho will do. There are no certainties. Only the boss knows what the future holds for him, but I hope he stays because we need him."
Pepe then took the time to comment on los Blancos' recent struggles in La Liga, and stated that the team have only themselves to blame.
"It's not about Barcelona being better, it's about Madrid being worse.
"At Madrid we are like one big family. We're all united because we know we have to be, otherwise we're going nowhere."