Xabi Alonso has left his job as Real Madrid coach "by mutual consent," the club announced on Monday.
The news comes a day after Alonso's Madrid were beaten 3-2 by Barcelona in the Supercopa de Espaa final in Jeddah, Saudi Arabia.
Alonso has been replaced by lvaro Arbeloa, who had been coach of Madrid's reserve team, Castilla.
Alonso came under pressure before Christmas after a difficult run of just two wins in eight games, including defeats to Liverpool, Celta Vigo and Manchester City, but the team's form had improved since, with five victories before Sunday's Clsico loss.
"Real Madrid C.F. announces that, by mutual agreement between the club and Xabi Alonso, it has been decided to end his tenure as first-team coach," the club said in a brief statement on Monday.
"Xabi Alonso will always have the affection and admiration of all Madrid fans, because he is a Real Madrid legend and has always represented the values of our club. Real Madrid will always be his home.
"Our club thanks Xabi Alonso and his entire coaching staff for their work and dedication during this time, and wishes them the best of luck in this new chapter of their lives."
Alonso took over from predecessor Carlo Ancelotti this past summer after impressing at Bayer Leverkusen, where he led the side to the Bundesliga title for the first time in its history in 2024.
Alonso played for Madrid between 2009 and 2014, winning one Champions League, one LaLiga title and two Copas del Rey.
He began his tenure as Madrid coach with a run to the semifinals in this past summer's Club World Cup, where they were beaten 4-0 by Paris Saint-Germain.
In 2025-26, the team began the season with 13 wins in 14 games in all competitions -- including beating Barcelona 2-1 in the first Clsico of the season -- before November's poor run of results.
Arbeloa, 42, began his career as a player at Madrid before a spell at Liverpool, where he played alongside Alonso. The defender returned to Madrid in 2009 and spent seven seasons at the club before returning to coach with the academy in 2020.
