The French arm of beIN Sports, as quoted by the Daily Mirror, is reporting that Bayern want to sign Pepe as a long-term replacement for Dutch winger Arjen Robben.
The same article states that the Bundesliga champions have already submitted a bid in the region of £70m in an attempt to sign the Ivory Coast international.
Pepe has scored 17 goals and made eight assists in 29 league games so far this season.
According to the same story, Arsenal have been linked with the 23-year-old, especially as the Gunners aren’t expected to sign Denis Suarez on a permanent deal this summer.
However, given the limited funds at Unai Emery’s disposal, Arsenal could struggle to match the financial might of Bayern Munich.
Arsenal were limited to potential loan signings in the January transfer window and ultimately ended up bringing in Suarez for the remainder of the season.
But the Spanish midfielder has been unable to have a big impact at the north London side despite his previous experience of playing under Emery.
Arsenal are in fourth place in the Premier League table and a point ahead of Manchester United in the race to secure the final Champions League spot.
The Gunners will return to Premier League action with a home clash against Newcastle on Monday 1 April.
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