The Portuguese coach is being linked with AC Milan.
Empower Sports announced: "Paulo Fonseca has ended his connection with Lille OSC, the club he coached for the last two seasons and with which he is ending his contract this month. The coach is free to sign for another club.
'During this period, the Portuguese coach achieved several notable records, as well as breaking a few. In his first season, Paulo Fonseca led the Dogues to 5th place in Ligue 1 and consequent qualification for the UEFA Conference League, where they reached the quarter-finals of the competition this year - Lille's first time at this stage in a European competition. This season, the coach did even better by finishing in 4th place, which allows the French club to take part in the next edition of the UEFA Champions League Play-Offs.
"In addition to these milestones, Paulo Fonseca made history at Lille with the record for consecutive games without losing at home: a run of 22 games in all competitions between 17 September 2022 and 20 September 2023. He also achieved Lille's biggest ever win with a 12-0 win against Golden Lion in the French Cup.
"At the club in northern France, Paulo Fonseca has left a legacy of investing in young players. A total of 10 players aged 21 or under have made their debuts in various competitions. These include: Lucas Chevalier, Carlos Baleba (who was sold at the start of the season for 27 million euros to Brighton) and Ayyoub Bouaddi, who at 16 became the youngest player to start a Ligue 1 match. He also made 17 year-old Leny Yoro a permanent fixture in his starting XI.
"All of Paulo Fonseca's work has been recognised with two consecutive nominations for the best coach in Ligue 1 award by the UNFP (Union Nationale des Footballeurs Professionnels).
"The Portuguese coach will now consider his future and decide on the next step to take in his career."