The Blues chief has been given a reluctant vote of confidence by the Stamford Bridge board, who will not back him with cash this summer.
The Chelsea board are believed to be disappointed with this season's achievements of winning the Carling Cup and FA Cup - and believe Mourinho had enough resources to win the Champions League. They also want to see their side play more attractive football.
The Portuguese coach apparently wants to buy Blackburn striker Benni McCarthy but will be told that the £8million asking price is too steep.
He will instead by limited to free transfers Steve Sidwell and Bayern Munich striker Claudio Pizarro, while Alex will be recalled from his loan spell at PSV to be the cover they desperately need in central defence.
If Mourinho fails to deliver the Champions League, or at least the Premiership, next season his reign will come to an end after four tumultuous years during which he has won six trophies.
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