José Mourinho has agreed to a two-year contract to return to Real Madrid, sources have told ESPN, with the coach already saying his goodbyes at current club Benfica.

ESPN had reported that Mourinho had emerged as the front-runner to take over at the Bernabéu in recent weeks, looking to change the team’s fortunes after two consecutive seasons without winning a major trophy.

Sources said Mourinho’s new deal at Madrid has been verbally agreed upon, but not yet signed.

Benfica are set to receive €7 million ($8M) in compensation, sources said, as he had a contract at the Portuguese club until 2027.

Mourinho was previously in charge at Madrid between 2010 and 2013, going head-to-head with Pep Guardiola’s Barcelona and winning one LaLiga title, one Copa del Rey and one Supercopa de España.

Mourinho will replace his former player Álvaro Arbeloa, who took over in January after the firing of Xabi Alonso.

Arbeloa’s future is not yet clear, sources said, with some at the club believing the former reserve team coach should remain at Madrid in some capacity.

Madrid are currently 11 points behind champions Barcelona in LaLiga, with one round of games left to play.

They were eliminated from the Champions League quarterfinals by Bayern Munich, having overcome Mourinho’s Benfica in the knockout phase playoffs.

Florentino Pérez called presidential elections at the club last week, with candidates having until May 23 to present their candidacies, and there is therefore some uncertainty around when Mourinho would be officially announced as coach.

Sources said there have also been moves to bring legendary midfielder Toni Kroos, who retired in 2024, back to the club, although the role he would fill has not yet been defined.

– Real Madrid to bid adiós to captain Dani Carvajal after 13 seasons
– Álvaro Arbeloa backs Vinícius Junior and Kylian Mbappé after recent struggles
– Vinícius Jr. scores only goal as Real Madrid triumph at Sevilla

Speaking on Sunday after the Portuguese league season concluded, Mourinho admitted that his agent, Jorge Mendes, had been in contact with Madrid, while he had also received a contract renewal offer from Benfica.

“My future should be decided this week,” Mourinho said.

Benfica went unbeaten in Liga Portugal this season but finished third behind Porto and Sporting, after winning 23 games and drawing 11.

Since departing Madrid in 2013, Mourinho has coached Chelsea, Manchester United, Tottenham, Roma, Fenerbahçe and Benfica.