The Portuguese is now favourite to take the Brazil job after Real Madrid coach Carlo Ancelotti high-profile rejection earlier this week.
The Asian Champions League semifinal defeat to Al Ahli brought forward the decision for Jorge Jesus and Al Hilal to part ways. The 70 year-old leaves with a €1.8m payoff, reports Saudi media sources.
Al Hilal announced this morning: "Al Hilal and Jorge Jesus agree to terminate their contractual relationship.
"The Board of Directors of Al-Hilal Club Company has reached an agreement with the Portuguese coach of the first football team, Jorge Jesus, to terminate the contractual relationship between the parties.
"The Board expressed its appreciation for the efforts made by the technical staff since last season.
"Meanwhile, the Board decided to appoint coach Mohammed Al-Shalhoub to lead the first football team in the Roshn Saudi League."