Mourinho compensation deal agreed

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Jose Mourinho will be presented as Real Madrid's new manager on Monday after the Spanish giants reached a compensation agreement with Inter Milan.

The clubs' respective presidents, Massimo Moratti and Florentino Perez, met in Milan on Friday afternoon to thrash out a financial deal to facilitate the early release of Mourinho from his contract at the San Siro, which ran until 2012.

"In light of the excellent and constructive relations of friendship that exist between the two clubs, an agreement has been reached on the contractual clause that binds Jose Mourinho to FC Internazionale," read a statement on Inter's official website.

"Massimo Moratti thanks Florentino Perez for his willingness to join him in Milan and for his courtesy, which confirms, once again, the strong link between the two prestigious clubs."

Mourinho will replace Manuel Pellegrini in the Madrid hotseat after the Chilean was sacked on Wednesday night.

Madrid immediately outlined their intention to replace Pellegrini with Mourinho once they and the former Chelsea boss had negotiated his release.

That proved trickier than had been expected, with Inter determined to claim the full 16million euros they were entitled to according to a release clause in Mourinho's contract.

However, Inter, who were guided to the treble by Mourinho during 2009/10, confirmed on Friday evening that a deal - reportedly worth in the region of 8million euros - had been done.

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