Portuguese has been at the White House since 2010.
AS Monaco are on the verge of signing experienced Real Madrid centre-back Ricardo Carvalho, says ESPN.
The Portugal international has been at the Santiago Bernabeu for just the three seasons now, having arrived in the Spanish capital from Chelsea for only £6.7 million on a two-year deal in August 2010.
However, after a debut campaign in which the 35-year-old featured in 33 Liga contests, and 48 matches overall in all competitions, for the Los Blancos the player then fell out of favour under his compatriot, Madrid boss Jose Mourinho.
So much so that Carvalho has played in only 16 league contests for the Spanish giants in the past two campaigns, and in just 28 fixtures overall for the club.
And with his contract at Madrid set to expire on 30 June, the central defender will be available to the big-spending and newly-promoted Ligue 1 outfit for free this summer.