Jose Mourinho's contract contains annual mutual termination clause

The contract between Real Madrid and coach Jose Mourinho contains a clause which allows either party to terminate the deal without obligation at the end of each season according to the spanish newspaper AS.

Jose Mourinho signed a four-year deal when he replaced Manuel Pellegrini at the end of last season. His inevitable move to Madrid was the end of term's worst kept secret and was completed shortly after guiding Inter to an historic treble success including UEFA Champions League glory at the Bernabeu in May.

It now appears that the club have prepared for the unthinkable contingency of a Mourinho failure as they can opt to end his reign at the helm each year without having to pay any compensation to the 47-year-old.

Mourinho can also decide to leave Real Madrid for another club without having to negotiate a release from his lucrative four year deal.