Mourinho, 55, was sacked at Manchester United just last month following the Red Devils' 3-1 defeat by bitter rivals Liverpool.
Since leaving his post, the two-time Champions League winner has been out of work, but there has been no shortage of potential suitors across Europe.
Primeira Liga giants Benfica recently made an approach for their former boss, after the Lisbon-based outfit parted company with their manager Rui Vitoria - with club President Luis Filipe Vieira claiming 'money is no issue'.
But Mourinho has snubbed Benfica's interest in him and appears to be holding out for an offer from a club in Europe's top five leagues.
However, according to The Sun, the former Chelsea boss cannot accept an offer at the moment as he is still trying to sort out his settlement with United.
Mourinho is due a £15million settlement and his agent Jorge Mendes has asked for a meeting with executive vice-chairman Ed Woodward to sort out the final details of the separation.
And with that Mundo Deportivo has reported that Real President Florentino Perez approached 'The Special One' over a possible return to Los Blancos.
While the report stated Mourinho is ready to return to management this month, he claimed his return will only be completed if Perez acquires a new centre-back and a world-class forward.
Real are currently in fifth place in LaLiga, 10 points behind league leaders FC Barcelona.