Jose Mourinho settled a massive compensation package with Chelsea and then declared he was proud of his achievements with the Barclays Premier League side.

Mourinho finally agreed on a financial settlement late on Thursday evening after agreeing to leave the club by mutual consent earlier in the day.

Mourinho's decision to step down as manager was due to a breakdown in his relationship with the Chelsea hierarchy.

But he is set to land a reported £20million pay-off as compensation for the remaining three years of his contract - worth around £6million a year.

Mourinho said: "I am very proud of my work in Chelsea Football Club and I think my decision in May 2004 to come to England was an excellent one.

"It was a beautiful and rich period of my career. I want to thank all Chelsea FC supporters for what I believe is a never-ending love story.

"I wish great success to the club, a club that will be forever connected to me for some historical moments.

"I wish the players happiness in football and in their family life. Finally on my wife's and children' s behalf we thank the great professionalism of their school teachers and the beauty of so many friends."

After a night of negotiations at Stamford Bridge, Chelsea finally released a statement confirming that all contractual arrangements had been sorted out with their former coach.

The statement read: "Chelsea Football Club has reached agreement on all contractual arrangements with Jose Mourinho."