Roger Schmidt, who was sacked as Benfica coach at the end of August, is to receive €8.7 million in severance pay, the Lisbon club announced on Thursday.
Benfica informed the Portuguese stock exchange (CMVM) that it has "reached an agreement" on compensation with Schmidt, who joined the club in 2022 and whose contract was set to run until 2026.
The 57-year-old German, who landed the club's 38th league title in the 2022/2023 season, was sacked after the fourth day of the league campaign, following a difficult start to the season.
He was replaced by Portuguese coach Bruno Lage who has steered the club to second after 13 rounds, two points behind leaders Sporting.