By North-west correspondent Alex Stevens

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Manchester United will have to pay Jose Mourinho £15.6million in compensation if he is not appointed manager by 1 June, according to a report.

The Portugese is still in line to become the club’s next permanent boss despite speculation that Louis van Gaal could stay on for another year.

As revealed by Football Insider last month, Mourinho has signed a pre-contract agreement with United that is set to make him the highest paid manager in the world.

According to a report in Spanish publication El Pais by Mourinho biographer Diego Torres, the terms of the pre-contract state that the 53-year-old is due a payment of €20million, equivalent to £15.6million, if he is not appointed by United by 1 June.

Mourinho recently dropped a thinly-veiled hint that he will be managing a major Premier League club by July.

The Portugese stopped short of naming the specific club but made it clear that he already has job sewn up in the English top flight.

Football Insider understands he has agreed a three-year deal worth £48million and a deal is in place for the Portugese to take over at Old Trafford at the end of the season.

Target man: Mourinho has agreed to become the next United manager

Target man: Mourinho has agreed to become the next United manager

Van Gaal is coming under increasing pressure at Old Trafford despite overseeing 1-0 win over rivals Manchester City on Sunday that keeps alive United’s hopes of securing a top-four Premier League finish.

The likelihood is that the former Barcelona and Bayern Munich boss will leave Old Trafford at the end of the season, one year before his contract expires, although there is a possibility he will be sacked at the point the club are no longer in contention for a place in next season’s Champions League.

Ex-manager David Moyes was axed two years ago when United were no longer mathematically capable of qualifying for Europe’s premier competition the following season.