Chelsea could lose out to AS Monaco in the battle for Real Madrid coach Jose Mourinho.

The Mirror says Mourinho has received an offer from mega-rich Monaco to make him the highest-paid football manager in the world.

Monaco's Russian billionaire owner, Dmitry Rybolovlev, is determined to turn the rebuilding French club into a major force in European football.

Mourinho is demanding £12million-a-year to go back to Chelsea, and Rybolovlev wants to gazump his countryman Roman Abramovich in a major battle of wills.

Wealthy Paris Saint-Germain are also keen to land Mourinho and have made enquiries about the Special One, who is set to leave Real this summer.