Real Madrid president Florentino Perez has agreed to waive Jose Mourinho's compensation fee for him to return to Chelsea.

The Daily Mail says Mourinho is free to return to Chelsea after Perez last night waived the £12million compensation clause in his contract.

Perez announced that Mourinho's troubled and chaotic three-year stint at the Bernabeu will end next month after holding talks with the Portuguese coach over the weekend.

Mourinho had four years left on his contract. He will take charge of Sunday's clash at Real Sociedad and then bow out at home against Osasuna on June 1.