Real Madrid president Florentino Perez has held discussions with Jose Mourinho and has decided that the club and the coach will part company this summer.
According to Sky Sports journalist Guillem Balague, it has been agreed by the two parties that Mourinho will remain in charge of Madrid's final two La Liga matches and will leave on June 2.
The nine-time European champions have endured a disappointing season in which they have failed to retain their La Liga crown or reach the Champions League final and also lost the Copa del Rey final to Atletico Madrid on Friday.
Madrid have called for a press conference this evening in which they are expected to announce that Mourinho will leave the club at the end of the season.