Jose Mourinho will leave Real Madrid at the end of the season after the club and the coach agreed to his departure by mutual consent, the club's president Florentino Perez has announced.
Mourinho will take charge of Real Madrid's final matches of the Primera Division season, away to Real Sociedad on May 26 and at home to Osasuna on 2 June, after which he will depart the club.
Perez declared that Mourinho had come to an agreement with the club to rescind his contract with no compensation.
"The club and the manager agree that the timing is right to bring our relationship to an end," Perez said at a press conference this evening.
"On behalf of the directors, I would like to thank Jose Mourinho for his hard work over the last three years."
Perez also announced that Real Madrid's presidential election will take place the day after Mourinho leaves the club, on Monday 3 June.
It is expected that he will be unopposed in the election, with no candidates having put themselves forward two weeks before the election is due to take place.
Perez added that the club had not come to any agreement, or signed any pre-contract with a coach, declaring they would begin searching for Mourinho's successor in the coming days.
Paris Saint-Germain coach Carlo Ancelotti has been touted as the front runner and admitted on Sunday that he had met with his current club's president Nasser Al Khelaifi and director of football Leonardo to inform them of his desire to leave the Ligue 1 champions and join Madrid.
Al Khelaifi confirmed that but reiterated that the club wanted the Italian to see out his contract, which expires in 2014.