Former Real Madrid and Besiktas defender Pepe has signed a two-and-a-half year deal with Porto, rejoining the Primeira Liga club 12 years after leaving.
The 35-year-old Portuguese spent three seasons at the Estádio do Dragão between 2004 and 2007, winning two league titles and subsequently joining Real Madrid for a £30m transfer fee.
Pepe terminated his contract with Turkish side Besiktas in December and has since been linked with a move to the Premier League, with Arsenal and Wolves among the clubs rumoured to be interested in him.
However, the Portuguese champions confirmed on Tuesday morning that the experienced defender has joined as a free agent, keeping him at the club until June 30, 2021.
The centre-back joined his new team-mates on Tuesday morning for a training session ahead of their Clássico fixture against Sporting CP on Saturday.
Pepe reunites at Porto with former Real Madrid team-mate Iker Casillas, with the defending champions six points clear at the top of the Primeira Liga.