The Portugal international also had words of praise for Porto playmaker Joao Moutinho, but stressed that Madrid already have Mesut Ozil in his position.
"Who I would sign if I were Real Madrid president? I really like Gaitan. He has a lot of creativity and has the quality to play for a club like Real Madrid," Pepe was quoted as saying by O Jogo.
"Another player who I really like is Porto's Fernando. He has the quality to play for Madrid, too. So those are the two players I'd bring to the club.
"Joao Moutinho is a great player as well and has a lot to give to Porto and Portuguese football. I don't see him at Madrid, though, because we already have Ozil."
Gaitan has recently been linked with clubs such as Barcelona and Manchester United, while Fernando has reportedly caught the attention of several Serie A sides.
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