Real Madrid made the announcement after reaching the consensus of coach Xabi Alonso.
Real Madrid's announcement reads: "Xabi Alonso will always receive the affection and admiration of all Real Madrid fans, because he is a legend of Real Madrid and always represents the values of the club at all times. Real Madrid will always be his home.
The club would like to thank Xabi Alonso and the entire coaching staff for their efforts and dedication over the past time, and wish them good luck on the new journey".
The announcement was made less than 1 day after Real Madrid's 2-3 defeat to Barcelona in the Spanish Super Cup final.
Immediately after that, Real Madrid announced that Alvaro Arbeloa is the new coach of the first team. The 42-year-old former defender is the one who has coached Real's (Castilla) reserve team since the beginning of the season.
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