The Italian, 55, won four trophies with Madrid in his two seasons in charge; Copa Del Rey, UEFA Champions League (La Decima), Club World Cup and UEFA Super Cup, but that was not enough to keep his job after missing out on major trophies this season.
Madrid were knocked out by Juventus in the Champions League semi-finals, Barcelona won La Liga while city rivals Atletico Madrid defeated them in the quarter-finals of the Copa Del Rey.
Ancelotti’s side finished second in Spain’s top flight, two points behind Barca, who have reached the Spanish Cup and Champions League finals.
Club president Florentino Perez, told journalists during news conference on Real Madrid TV, that:“The board of directors has taken the decision this afternoon to relieve Carlo Ancelotti of his duties as coach of Real Madrid. It has been a very hard decision… but Real Madrid is extremely demanding and we believe it is time to give a new impulse to the club.
“Carlo Ancelotti in these two years, has won the affection of the board and my personal affection and that of the fans. Carlo is part of our history. But as we all know, in Madrid the demands are great. We think it’s time for a new impulse which can allow us to win new titles and achieve our maximal level of competitiveness.
“With our great team, talent and hard work we can give satisfaction and success to our fans. I want to thank Carlo for his hard work in the last two years and tell him this is still is house and home. Next week we will know the name of the new coach of Real Madrid.
When asked about the possible candidates for the job, Perez added: “It would be good if the new manager spoke Spanish.”
Ancelotti’s champions league win was his third as a manager having won it twice with AC Milan, in 2003 and 2007 before Madrid in 2014.
Earlier on Monday, Ancelotti had announced to Italian newspaper Il Giornale, that he would take a year off and have back surgery if he left Real.
“I must have a back operation because of spinal stenosis that for some time creates a tingle in my hands.
“I don’t know how long the period of recovery will be. I can assure you that I’ve had plenty of offers from Italy, England, Germany. I’m sure they will not be lacking from here until next year,” he said.
Reports have emerged that Napoli manager, Rafa Benitez, is the most likely to succeed the Italian while it has also been alleged by AC Milan president, Silvio Bersculoni, that Ancelotti will return to Milan if sacked as manager.
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