Jose Mourinho is returning to Real Madrid to become the Spanish club's head coach on a two-year deal.
The club's president, Florentino Perez, has been a huge admirer of the current Benfica manager since his first spell at the Bernabeu between 2010 and 2013, and they have remained close in the years since.
Mourinho's contract, which will run until the summer of 2028, includes an option to extend by a further year.
An announcement is expected after Real Madrid's final game of the season against Athletic Bilbao on Sunday.
The Benfica boss had previously played down rumours of his return, promising to remain focused on the rest of the season in Portugal, as the club battled with Sporting Lisbon to finish second and seal automatic Champions League qualification.
He will succeed Alvaro Arbeloa, who played under Mourinho at Real Madrid and took charge of Los Blancos until the end of the season when Xabi Alonso was sacked in January, just seven months into the job.
Alonso, who left the club by mutual consent in January after 28 games, was appointed Chelsea manager on Sunday.
Mourinho's return comes at a tumultuous time for Real Madrid: Perez last week was forced to say that he would not be stepping down after this season, which has seen the club beaten to the domestic title by arch-rivals Barcelona.
Real Madrid's struggles extended to Europe, where they exited the Champions League at the quarter-final stage.
Off-field tensions have compounded the club's difficulties, with captain Federico Valverde treated in hospital after an altercation this month with teammate Aurelien Tchouameni.
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Earlier this season, Mourinho's Benfica played Real Madrid in the Champions League, where it was alleged that Madrid forward Vincius Jr was racially abused in the first leg.
Cameras picked up the 25-year-old telling French referee Francois Letexier he had been targeted in a comment made to him by Benfica's Gianluca Prestianni in February. The match was then paused for 10 minutes before continuing.
Mourinho told reporters after the game that "a stadium where Vinicius plays, something happens, always... I told him, when you score a goal like that, you just celebrate and walk back."
Former Manchester United player Mikael Silvestre condemned the remarks in an interview with Sky News.
Read more: Mourinho sounded like he was victim-blaming
After an investigation, UEFA concluded in April that Prestianni's conduct was anti-gay rather than racist, and handed him a six-match ban, with three of those matches suspended for a two-year period.
(c) Sky News 2026: Jose Mourinho to return to Real Madrid
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