Real Madrid confirmed the news on Friday, just two days after sacking coach Manuel Pellegrini.
Reports suggest Real Madrid and Inter Milan have agreed an £6.8million deal for Mourinho.
“The president Massimo Moratti and Florentino Perez met this afternoon,” said a statement on Inter’s official website.
“In light of the excellent and constructive relations of friendship that exist between the two clubs, an agreement was reached on the contractual clause that binds Jose Mourinho to FC Internazionale.
“The time and the manner by which the agreement will be honoured has been defined.
“Massimo Moratti thanks Florentino Perez for his willingness to join him in Milan and for his courtesy, which confirms, once again, the strong link between the two prestigious clubs.”
