Real Madrid confirmed the signing of coach Jose Mourinho from Inter Milan on Friday.

The club has agreed to pay Inter Milan eight million Euros (US$9.8 million) for the services of the Portuguese coach, who will be formally presented to the press and fans in the Santiago Bernabeu Stadium at 13:00 hours on Monday.

Real Madrid President Florentino Perez announced on Wednesday that Mourinho would replace Manuel Pellegrini as first team coach, but added that before that happened the question of the compensation to be paid to Mourinho's former club had to be resolved.

Inter had been asking for 16 million Euros in compensation and Perez has been able to reduce that after travelling to Milan to negotiate with Massimo Moratti, his counterpart at Inter.

The eight million euro payment means that Real Madrid has spent a total of 16 million Euros on signing its last two coaches.

A year ago Real Madrid spent four million euros in compensation to Pellegrini's former club, Villarreal and Pellegrini has now been paid the same amount again in compensation for his sacking.

Mourinho will sign a four year contract with Real Madrid and will earn around ten million Euros per season.