Jose Mourinho signed a pre-contract in February to take over as manager of Manchester United in place of Louis van Gaal at the end of the season, Spanish newspaper El Pais reported on Sunday, citing sources close to the Portuguese.
Former Chelsea, Real Madrid and Inter Milan coach Mourinho has been persistently linked in the media with the Old Trafford job since departing Stamford Bridge for the second time in December.
Under the terms of the agreement, the report said, United would have to pay Mourinho five million pounds ($7.24 million) if they did not offer him a full contract by May 1 and another 10 million pounds if they failed to give him the job by June 1.
Van Gaal signed a three-year contract in May 2014 but is not expected to see out the deal with fans unhappy with the style of play and the club in sixth place in the Premier League going into Sunday's Manchester derby.
The report, which cited a source with links to the company run by Mourinho's agent Jorge Mendes, said United wanted a flexible deal because of a split in the Old Trafford board as to whether the 53-year-old was the right choice for the club.