Jose Mourinho will meet with Real Madrid president Florentino Perez to decide his future at the end of the season, according to the Daily Mail.
The paper claim that Madrid have already prepared a £10 million severance package to let Mourinho leave in the summer if both parties agree it is time to go their separate ways.
The Portuguese coach has been linked with a move away from the Bernabeu, despite guiding Real Madrid to the quarter-finals of the Champions League and to the final of the Copa del Rey at rivals Barcelona's expense.
Madrid's La Liga title defence has stuttered this season amidst rumours of dressing room tension between Mourinho and his players.
That has led to reports he could leave to join either Paris Saint-Germain, Manchester City or Chelsea in the summer, while former club Inter Milan are also said to be interested.
The 50-year-old has been vocal in his desire to return to English football in the future, and while Madrid's progressed to the quarter finals of the Champions League at the expense of Manchester United last week, Mourinho revealed that success in Europe's leading club competition does not guarantee he will stay put.
Mourinho's close relationship with Sir Alex Ferguson has prompted suggestions he could take over at Old Trafford when the Scot eventually decides to retire.