The Russian Football Union said on Tuesday it had ended its contract with national team coach Fabio Capello, three years before the country hosts the 2018 World Cup finals. Russian sport news agency R-Sport reported the compensation to be around 14.8 million euros ($16.3 million).

"The Russian Football Union and the head coach of Russia's national team, Fabio Capello, have reached an agreement to terminate the employment contract by mutual agreement," read a statement on the RFS's website.

The news comes after contract discussions in June 2014, off the back of a European Championship qualifying defeat to Austria. Russia, third in Group G, are struggling to qualify for the tournament in France next summer after picking up just eight points from six games. Capello was reported to have been paid 9.6 million euros a year in his contract, although Capello did go unpaid for eight months after financial issues inside the Russian union. Those debts have now been paid off, the association says.

Capello took the Russian job in July 2012, having previously been England head coach at the 2010 World Cup, but failed to impress despite securing Russia's first World Cup participation in 12 years.

Local media have quoted sources as saying CSKA Moscow head coach Leonid Slutski is likely to take over from the 69-year-old Italian.

jh/msh (dpa, Reuters)