Reported Chelsea target Jorge Sampaoli has stepped down from his role as Chile head coach.

The 55-year-old has been involved in a dispute with the Football Federation of Chile (ANFP) and its newly-elected president Arturo Salah for a number of weeks now, claiming that his position has been undermined after details of his contract were disclosed in the press.

Sampaoli has now been given the go-ahead to quit his role, which will see him forgo the bonus money earned for guiding the team to Copa America glory last summer and pay a sum of money to the national federation against his next contract.

"With this step, the board of the ANFP has achieved the goal of resolving the current situation affecting the national team, avoiding uncertainty involving potential lengthy court actions," read a statement from the ANFP.

"Now we will dedicate ourselves to this priority, to do everything possible to qualify for the World Cup in Russia in 2018."

Manchester City manager Manuel Pellegrini has been linked with the role due to speculation over whether he will be forced out of the club this summer by the arrival of Pep Guardiola.

Meanwhile Sampaoli, who was named in the top three for the 2015 FIFA Coach of the Year award, has been tipped for a move to England to take over from Guus Hiddink at Chelsea at the end of the campaign.