The Portuguese future has been a subject of speculation for weeks, having been linked with Real Madrid.
In anticipation of his departure, Benfica have reportedly been searching for a replacement, with Fulham’s Marco Silva and former Manchester United coach Ruben Amorim among the names considered.
The decision to bring back Mourinho marks a shift in Real Madrid’s recruitment strategy. The appointment is being personally driven by Perez, unlike the hiring of Xabi Alonso last season.
Mourinho’s first spell at the Bernabeu, from 2010 to 2013, yielded three domestic trophies, most notably the 2011-12 La Liga title, which was won with a record-breaking points tally.
His return comes as Madrid grapples with a second consecutive season without a major trophy.
Xabi Alonso was dismissed in January, with Alvaro Arbeloa stepping up from the reserve side, Real Madrid Castilla, to serve as interim coach.
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