The Blancos defender is optimistic about his side's chances of going all the way in Europe, while he has hailed Cristiano Ronaldo's desire to improve
Pepe believes Real Madrid are making good progress in their bid to win 'la Decima' this season.
The Santiago Bernabeu side last won the Champions League in 2001-02 and have since been unable to reach the final of European club football's elite competition since.
Nevertheless, Pepe is optimistic about their chances of going all the way this term following their 6-1 win over Schalke in the first leg of their round of 16 tie last week.
"We have to believe we can win the Decima. We're working towards that and the truth is that we are doing a good job, both in La Liga and in the Champions League," the centre-half told Record.
"And we've got the [Copa del Rey] final, too. We're doing really well at the best stage of the season. We are a consistent and reliable team."
Pepe then went on to voice his admiration for Cristiano Ronaldo and outlined the way in which the attacker astounds his team-mates with his professionalism and desire to improve.
"Cristiano surprises us every day. He doesn't have any limits," the defender said of the current Ballon d'Or holder.
"He has the mindset of always wanting to do more. He's always trying to beat last year's goal record and that's why he's so exceptional."