Benfica announce Jesus exit

The two parties have failed to agree terms over a new deal and the 60-year-old is now being tipped to take charge of rivals Sporting Lisbon

Primeira Liga champions Benfica have confirmed that they have begun searching for a new coach after ending negotiations with current boss Jorge Jesus over a contract extension.

The 60-year-old has won three titles and five league cups with the club since arriving at the Estadio da Luz in 2009, but the two parties failed to agree terms on a new deal, meaning the Portuguese will become a free agent at the end of the month.

In a statement to the Portuguese Securities Market Commission, Benfica confirmed that talks were now "closed regarding a possible renewal of the contract that end on June 30, 2015".

The announcement added: "As a result, Benfica have begun preliminary talks on the potential candidates to replace the head coach."

Benfica's announcement comes after reports in Portugal linked Jesus with a move to city rivals Sporting Lisbon, with whom the former midfielder started his professional career.

While nothing official has been announced, Sporting did confirm on Thursday that current coach Marco Silva has had his contract terminated.