Jose Mourinho is set to receive £10m in compensation after he was dismissed by Chelsea yesterday afternoon, according to reports.

It was the understood that the Portuguese would receive north of £40m having only signed a new deal with the club in the summer which would keep him in the job until June 2019.

However, according to the Daily Mail, Mourinho's legal dispute with former Chelsea physio Eva Carneiro may result in him receiving a fraction of the initial settlement.

Instead, Mourinho will be paid £250,000 per week up to a maximum of £10million - until he takes a new job.

The paper report: "This compromise has seen Chelsea call the Portuguese’s dismissal 'mutual consent'.

"That came after it emerged that Abramovich would have been forced to pay Mourinho more than £40m if he fired the Chelsea manager.

"Buying out his four-year deal was one of the main reasons behind the reluctance to sacking Mourinho but the 'mutual' decision allowed them to avoid this pay-out."

Time's up: Mourinho was dismissed after Monday's defeat to Leicester, bringing their record this season to nine defeats in 16 league games. Image: Nick Potts / PA Wire/Press Association Images

Mourinho took charge of the club for the last time on Monday, during his side's 2-1 defeat at league leaders Leicester.

The club announced his departure in a statement yesterday claiming "results have not been good enough this season and believe it is in the best interests of both parties to go our separate ways."