Liverpool have reportedly been tracking the Lille ace for quite some time.
French media outlet L'Equipe claimed earlier this week that the Reds were stepping up their interest in the 24-year-old winger, and were close to matching Lille's €80 million (£71 million) asking price.
According to the Sun, however, Liverpool look set to be disappointed, with the Ivory Coast international believed to prefer a move to Bayern Munich.
And missing out on Pepe will be a real bitter pill to swallow for Jurgen Klopp.
He was on fire for Lille this season, racking up an impressive 23 goals and 12 assists in 41 appearances in all competitions.
Liverpool desperately need more competition for their current front three and Pepe would have been the ideal addition.
If reports from the Sun are to be believed, however, Klopp might just have to look elsewhere.
Whilst he is still a Lille player, though, Liverpool still have a chance to convince him into moving to Anfield, and Klopp must do everything within his power to try and change the winger's mind.
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