The Italian gaffer took over as acting first-team manager in the wake of Antonio Conte’s departure last month.
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The Italian departs after spending just 16 months in the North London hotseat, having replaced Nuno Espirito Santo in November 2021.
Pep Guardiola remains in the market for a new number nine, following the departure of club legend Sergio Aguero and after City’s failed attempts to lure Harry Kane away from Tottenham Hotspur this summer.
Kane, who is valued at over 100 million pounds ($138.26 million, about N69 billion), is currently at the European Championship with England.
Mourinho had only won one of his last six matches in all competitions before being relieved of his duties by Tottenham, who got off to a winning start under Ryan Mason against Southampton on Wednesday.
Mourinho was removed from his post as manager with Tottenham sitting five points behind West Ham in the race for the top four, after winning just one game in their last six.
Real Madrid are able to buy the player back for an increased fee within the next two years
Tottenham Hotspur announced on Wednesday an increase in revenue of 80 million pounds ($94.19 million) in 2019, but club chairman Daniel Levy said the figures were inconsequential.
Tottenham chairman Daniel Levy has confirmed the club will not be able to move into their new stadium this year and will continue to play home games at Wembley, up to and including their Premier League clash with Wolves on December 29.