"I'm really pleased with Pepe and we're talking to him about extending his contract here," said Rafa Benitez.
"When we decided to bring him here, it was because we knew he was a very good goalkeeper, but I also knew the person and his mentality.
"He's a very good professional, always joking in the dressing room. It's all very positive. He's getting back to his best, it's clear. He's better now, and the team is better now.
"He needed confidence and, after two or three clean sheets, he's back up there. He's still very young but, for me, he's one of the top three goalkeepers in England. In Spain now, he's number one.
"Whether he plays or not for his country depends on his manager but, while we have some good goalkeepers in Spain, he's number one as far as I'm concerned.
"He's got two more years after this year. But we are looking to extend it because we know there were some clubs asking about him and we don't want to sell him. We want to show we have confidence in him."