Newcastle face competition for Â£8m-rated forward
L'Equipe report that the club has been watching the 21-year-old, who has impressed playing for Angers in Ligue 1 this season.
The Ivory Coast international is also interesting Lille, Roma, Monaco and Juventus ahead of the January transfer window.
Pepe – who can play up front or in the wide positions – is under contract in France with Angers until the summer of 2019.
Speaking last week, Newcastle manager Rafa Benitez said he had a clear idea of what he felt the club needed next month.
"I know what we need, but it’s too early," said Benitez, whose side lead the Championship ahead of Saturday's game against Burton Albion at the Pirelli Stadium.