Pepe is set to become Arsenal’s fourth signing of the summer transfer window after a £72m deal was agreed.
The Ivory Coast international is expecting to pen a five-year contract once he completes a medical this week.
Arsenal have had to see off competition for Napoli for Pepe but the Serie A outfit already have an alternative target in mind.
According to Calciomercato, Carlo Ancelotti is focusing his attention of Inter Milan forward Mauro Icardi.
Napoli value the Argentina international at €50m (£45m), which is someway short of the San Siro club’s £58.5m (€65m) asking price.
The two teams could come to a compromise, however, because Inter Milan need to raise funds to sign Romelu Lukaku from Manchester United.
Antonio Conte has identified Lukaku as his top target in the summer transfer window.
A £54m cash bid was rejected by the Red Devils earlier this month, who are looking for around £80m.
Alternative proposals including player-plus-cash and loan offers have also failed to meet United’s demands.
If Inter Milan can raise funds from selling Icardi to Napoli then that could swell their kitty enough to sign Lukaku.
If Old Trafford bosses sanction the sale of Lukaku then that is likely to result in the signing of Harry Maguire from Leicester City.
Maguire is Ole Gunnar Solskjaer’s top target to strengthen his defence but a £70m offer was rejected because it did not meet the Foxes’ £80m asking price.
But, according to The Irish Independent, United are set to meet Leicester’s valuation for the England international once they sell Lukaku.
Every transfer window is usually make by a number of transfers triggered in a domino effect.
A deal for Pepe to Arsenal leading to United signing Maguire would go down as one of the most expensive set of deals in transfer history.
How the transfers could work
– Nicolas Pepe snubs Napoli for Arsenal
– Napoli sign Mauro Icardi from Inter Milan as an alternative
– Inter Milan then have the funds to sign Romelu Lukaku from Inter Milan
– Manchester United use Lukaku sale money to sign Harry Maguire from Leicester for £80m