Aitor Karanka, Jose Mourinho's assistant manager at Real Madrid, has had his contract rescinded by Los Blancos according to Spanish daily AS.
Karanka, who also spent five years at the Santiago Bernabeu as a player, decided not to take up Mourinho's offer and follow the Portuguese manager to Chelsea this summer. Instead, the 39-year-old hoped to be offered another coaching role at Madrid.
However, according to AS, Karanka met the with the club's executive director Jose Angel Sanchez on Monday and the two men concluded that the best option for both parties was to terminate the coach's contract, which had been due to run until 2016.
It became inevitable that the Basque would leave the Bernabeu when Ancelotti announced that Zinedine Zidane would be his assistant coach for the upcoming campaign.
Karanka is reportedly keen to pursue his own management career and believes that his experience with Los Blancos - both as a player and as a coach - stands him in good stead to take the step up from assistant to boss.
According to Abu Dhabi-based outlet Sport 360, Karanka last week missed out on the job at Al Ahli following the departure of fellow Spaniard Quique Sanchez Flores, with the Dubai club appointing Romanian coach Cosmin Olaroiu instead.