Real Madrid are set to confirm the return of José Mourinho on Wednesday after the coach's previous club, Benfica, announced his departure.
Madrid president Florentino Pérez had made rehiring Mourinho -- who left the Bernabéu in 2013 -- one of his re-election promises ahead of his victory in Sunday's vote of club members.
Mourinho's agent, Jorge Mendes, and Madrid's director general José Ángel Sánchez and chief scout Juni Calafat were all spotted meeting at a hotel in the centre of the city on Tuesday evening.
"Benfica has informed the CMVM [Portuguese financial regulator] that Real Madrid has formally expressed its intention to hire José Mourinho for the amount of 15 million euros, with the coach having given his agreement," Benfica said in a statement on Tuesday.
ESPN reported last month that Mourinho had agreed to return to Madrid as they look to revamp the team ahead of next season, following two years without a major trophy.
Madrid also made official the departure of Álvaro Arbeloa -- who replaced Xabi Alonso in January -- on Tuesday.
Mourinho was a key part of Pérez's election campaign, along with the signings of Ibrahima Konaté and Denzel Dumfries.
Real Madrid have also made public a €150 million (£173.32m) offer for Atlético Madrid's star forward Julián Álvarez, which they said had been rejected.
Bidding the sum for a "Galáctico" signing was another of Pérez's election promises.
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Mourinho was last in charge of Madrid between 2010 and 2013, going up against Pep Guardiola's Barcelona.
He won one league title, a Copa del Rey and a Spanish Supercopa, and reached three Champions League semifinals.
Since he was last at the Bernabéu he has coached Chelsea, Manchester United, Tottenham Hotspur, Roma, Fenerbahçe and Benfica.
At Benfica, he went unbeaten in the Portuguese league last season while finishing third, and was eliminated by Madrid in the Champions League knockout phase playoffs.
Mourinho said farewell to Benfica in an Instagram post on Wednesday.
"I would like to thank President Rui Costa for the opportunity he gave me to work for Sport Lisboa e Benfica," Mourinho said. "Representing this club has been an honour and a privilege.
"I would also like to express my gratitude to all the staff at Benfica Campus, whose professionalism, dedication and competence have been exemplary.
"To the players with whom I have had the pleasure of working, I offer my sincere thanks and my best wishes for every success in their personal and professional lives. I leave with the conviction that, more than just a moment, we have forged a lasting bond: my player for a day, my player for life."
Information from ESPN's Adriana Garcia contributed to this story.