The Portuguese defender is optimistic about his side's chances of going all the way in Europe this season and hails countryman Cristiano Ronaldo's desire to improvePepe believes that Real Madrid are making good progress in their bid to win 'La Decima' this season.
Los Blancos last won the Champions League in 2001-02 and have since been unable to reach the final of European club football's elite competition.
Nevertheless, the defender 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.
"We have to believe we can win La 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-back 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, enthusing about 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," he remarked 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."