Jose Mourinho will get a compensation package lower than the £30 million he was rumoured to have received after Tottenham Hotspur sacked him on Monday.
The 58-year-old had a contract worth around £10m per season until 2023.
ESPN reports Spurs will pay a figure closer to £20m.
"Jose and his coaching staff have been with us through some of our most challenging times as a club. Jose is a true professional who showed enormous resilience during the pandemic," Tottenham chairman Daniel Levy said.
Tottenham sits in seventh place in the Premier League.
They are five points adrift of the top four and face Manchester City in the Carabao Cup Final on Sunday.
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