Jose Mourinho is the preferred candidate of Real Madrid President Florentino Perez to take over as head coach this summer, according to The Athletic.
Interim boss Alvaro Arbeloa’s contract runs out at the end of the season.
Mourinho, who is currently in charge of Benfica, reportedly has a £2.6 million break clause in his contract with the Portuguese club.
However, it is believed the 63-year-old does not enjoy universal support inside Real Madrid to return for a second spell.
But with Perez leading the process to find a long-term successor to Xabi Alonso, who was sacked earlier this season, Mourinho finds himself in a strong position.
Mourinho spent three seasons in charge of Real Madrid between 2010 and 2013, winning LaLiga and the Copa del Rey.