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Published 18:19 21 Jun 2017 BST
Updated 02:37 22 Jun 2017 BST
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The Portuguese defender is a free agent after leaving Madrid, and Hamann says he would sign him up if he was in Jurgen Klopp's shoes.
Hamann was on punditry duty for Irish television, covering Portugal's Confederations Cup 1-0 win over Russia, when he made the suggestion.
https://twitter.com/DietmarHamann/status/877546177625042944
The former Liverpool midfielder has a point. Pepe is a very good defender. He was named man of the match in the Euro 2016 final and was a regular for Madrid over the past decade.
He may be 34, but considering there's a lack of top level defenders available, Pepe could be worth a punt for a team in Premier League.
But because of his infamous on-pitch antics, Pepe isn't the most popular figure amongst football fans, and Hamann's suggestion didn't go down well with Liverpool fans on Twitter.
https://twitter.com/DietmarHamann/status/877549261776400384
https://twitter.com/shanklysmen/status/877547413505843204
https://twitter.com/jagusak/status/877548263427256322
https://twitter.com/LfcAlonso/status/877555445745033217
https://twitter.com/elpistolero85/status/877551398887534592
https://twitter.com/MauriceMacken/status/877547342483861504
https://twitter.com/Howie82xx/status/877563852921204737
https://twitter.com/oliver_golden1/status/877564781447827456
https://twitter.com/ElSpriggo/status/877557110178971648
https://twitter.com/mickbailey64/status/877556089151246336
https://twitter.com/Sph90457xp74/status/877562692382318592
https://twitter.com/raygleahey/status/877563188790697985
https://twitter.com/luke_edwards88/status/877553747974656000
https://twitter.com/brianlfc0210/status/877566714850021378
Some thought Hamann was referring to Pepe Reina, the former Liverpool goalkeeper. Unlike the Portuguese defender, Reina is popular with Liverpool fans.
https://twitter.com/james_byrne1979/status/877555177531879425
https://twitter.com/MikeTaylor/status/877547071112433664
https://twitter.com/dsclfc/status/877547329376616448
However, there were a few people who actually agreed with Hamann.
https://twitter.com/McHammer888/status/877551770251276289
https://twitter.com/HaukurGudnason/status/877552555055656961
https://twitter.com/PeterHobbes/status/877567383346524160
https://twitter.com/ASBKltd/status/877551160156200960
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