Real Madrid have terminated the contract of manager Carlo Ancelotti after two seasons in charge, various media in Europe reported on Monday night..
Club president Florentino Perez announced the decision in a press conference on Monday as the popular Italian paid the price for a trophyless season at the Santiago Bernabeu.
"I would like to inform you that the board has taken the decision to relieve Carlo Ancelotti of his post as Real Madrid coach," Perez said.
"It was a very difficult decision to make; the demands at this club are the utmost because Madrid always wants to win silverware.
"The affection that the players and the fans have for Carlo is the same as the affection I myself have for him.
"What did Ancelotti do wrong? I don't know. The demands here at Real Madrid are very high."
Napoli's Spanish boss Rafael Benitez is odds-on favourite to take over from Ancelotti and Perez confirmed the club hope to announce his successor next week.
Ancelotti won the Champions League, Copa del Rey, UEFA Super Cup in his first season in charge at the Bernabeu and followed up with FIFA’s Club World Cup in December.
However, Real finished two points behind La Liga champions Barcelona while they were eliminated by Juventus in the Champions League semi-finals.