Mourinho won a vote of specialist journalists Wednesday. Mourinho beat former Chelsea coach, Roberto di Matteo, who led the Premier League club to the Champions League title, Atletico Madrid's Diego Simeone and former Barca coach, Pep Guardiola, reports Xinhua.
It is the fourth time that Mourinho, a former Porto, Inter Milan and Chelsea boss has received the award and it comes after a season that saw Real Madrid win the Primera Liga and the Spanish Supercup.
However, the news comes at possibly the lowest moment in Mourinho's two and a half years with Real Madrid. His side is currently trailing Barcelona by 16 points in the Primera Liga and he has admitted it is impossible for them to win the title this year.
Meanwhile he has come under increasingly criticism for his side's disappointing results and performances this season and above all for his recent decision to relegate Spain international goalkeeper, Iker Casillas to the sub's bench in favour of Antonio Adan.
The fans in the Santiago Bernabeu booed Mourinho for that decision at the start of Sunday's 4-3 win at home to Real Sociedad, in which Casillas entered the game after five minutes as Adan was sent off for a foul on visiting striker Carlos Vela.
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Mourinho has also been in the spotlight after not attending Monday's gala for the Ballon D'Or in Zurich, where he was a candidate to be named best coach of 2012 along with Guardiola and Spain national team coach, Vicente dl Bosque.
The Madrid coach gave the excuse that he needed to stay in Madrid to prepare for this Wednesday's Copa del Rey tie at home to Celta Vigo.
However, as the award to given to Del Bosque, Mourinho was filmed watching the training session of his son's team in Madrid, putting his excuse in doubt. Meanwhile several Madrid players, such as Sergio Ramos, Xabi Alonso and Cristiano Ronaldo did attend the event.