Real Madrid have announced that Jose Mourinho will leave the club at the end of the season after three years in charge.
At a packed press conference, president Florentino Perez said the Spanish giants had "decided to bring our relationship to an end".
"After the talks with our coach Jose Mourinho we have reached the agreement to end the contractual relationship at the end of this season," Perez told reporters at Real's Bernabeu stadium after a board meeting on Monday.
"Nobody's been sacked, it's a mutual agreement," he added.
While Real have yet to name a successor, Perez confirmed the club had approached Paris St Germain to ask about the availability of Carlo Ancelotti, Reuters reported.
"Both the club and the coach agree that it is the right moment to end this relationship," Perez said, adding Mourinho would not receive a payoff.
Following Real's exit from the Champions League in April, he told a news conference: "I know in England I am loved.
"I'm loved by the fans. I'm loved by the media, which treats me in a fair way.. I know I'm loved by some clubs, especially one."
Realhave two La Liga games left this season and Mourinho's final match in charge will be at home to Osasuna the weekend after next.