He could be free to make a return to England this summer, with reports suggesting that his departure from Real was decided last year.
An agreement is believed to have been signed by the Portuguese coach in December, stating that he will depart the Bernabeu at the end of current campaign.
His exit has been anticipated for some time, with public disputes with playing staff and a strained relationship with the supporters appearing to have eroded his reputation at the club.
Chelsea are reportedly keen on their former boss, and could swoop to bring him in as Rafael Benitez’s replacement this summer.
However, City are also said to be in the chase, with Roberto Mancini’s future far from certain, following an underwhelming season.
There have even been suggestions that he could replace Fergie at United, but such a move is unlikely to materialise this summer, with the Scot almost certain to stay at Old Trafford.
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