London - Jose Mourinho is available for a dramatic return to Real Madrid after Manchester United paid him a reported £15 million (R265 million) in compensation following his sacking last month, according to British media on Thursday.

The Daily Mail reports that a source close to Mourinho - whose contract was due to run till the end of the 2019/20 campaign with the option of an extra season - revealed that compensation had been paid.

"There are no issues over Jose's contract with Manchester United. Everything has been sorted," the newspaper reports the source as saying.

"Jose is able to take on another job right now, but is in no rush.

"He is very relaxed about it and would be happy to wait until the end of the season if he needs to."

The Sun reports that United agreed to the payment following a meeting between Mourinho's agent Jorge Mendes and United executive vice-chairman Ed Woodward.

The pay-out leaves the 55-year-old Portuguese free to be considered for Madrid if the club decide to dismiss under-pressure coach Santiago Solari.

Mourinho's time at Real between 2010-2013 - which brought a league title and a Spanish Cup but saw them largely play second fiddle to Barcelona - ended as it did at United and Chelsea, with bad results and discord in the dressing room.

However, Real president Florentino Perez remains a fan and with the club 10 points behind La Liga leaders Barca and outside the Champions League places pressure is mounting on Solari, who could be relieved of his duties before his contract expires at the end of the season.

"There has been no contact, but they did get in touch with Jose after (Julen) Lopetegui was dismissed (in late October)," the Mail reports the source as saying.

"He told them he was the manager of Manchester United and totally committed to the club."