Chelsea have reportedly removed a clause from Carlo Ancelotti's contract that prevented him from joining another English club.
Under the terms of the Italian's deal, agreed in 2009, he was forbidden from working for a rival team for 12 months after departing Stamford Bridge.
According to the Evening Standard, Ancelotti has met with the club to agree a settlement following his dismissal on Sunday evening. At the point he left, Ancelotti still had a year remaining on his contract.
The newspaper also claims that Guus Hiddink, who managed Chelsea for three months in 2009, is the frontrunner to replace Ancelotti.
