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It is understood personal terms have been agreed between Jose Mourinho and Manchester United, who need to finalise issues such as image rights before the deal can be formally announced.

United were hopeful of making an announcement to confirm Mourinho's appointment on Wednesday, but the complex nature of the contract details means it could be Thursday before the deal is confirmed.

The Portuguese was pictured walking in London late on Tuesday night, flanked by his bodyguard, and was captured checking his mobile phone.

(Image: Vantagenews.com) (Image: Vantagenews.com)

Mourinho is said to have instructed United's executive vice-chairman Ed Woodward to sign a new centre-back, right midfielder, central midfielder and centre-forward, with free agent Zlatan Ibrahimovic set to be the striker.

The incoming United boss is understood to want a “captain” in central midfield.

In pictures - Jose Mourinho spotted in London:

(Image: Reuters) (Image: TT News Agency/Press Association Images)

Ibrahimovic was pictured arriving at Sweden's pre-Euro 2016 base at the Park Hotel in Stockholm, driving in his Porsche 918 Spyder worth £661,000.

Louis van Gaal was sacked by United on Monday despite winning the FA Cup just two days earlier.

United's languid style of play under the Dutchman combined with a fifth-placed Premier League finished ultimately spelled the end of his two-year spell in charge at Old Trafford.

In a lengthy statement published on the club's website, Van Gaal expressed his disappointment at being "unable to complete our intended three-year plan".

(Image: Ian Walton/Getty)

"I thank my players and wish them well for next season. It has been a pleasure to work with them and it has been particularly rewarding to see so many young players take their chance to break into the first team and excel," Van Gaal added. "I look forward to watching the continued development of these young players next season.

"Thank you to the owners and board of Manchester United for giving me the opportunity to manage this great club.

"I would also like to express my gratitude to the amazing United supporters. They are truly the best fans in the world."

LIVE: Follow all the breaking Mourinho developments as they happen