Real Madrid have acted decisively following their Super Cup defeat by arch-rivals Barcelona.
First-team boss Xabi Alonso has left the club with Real Madrid's best wishes following the result.
Real Madrid were beaten 3-2 by Los Cules in Sunday evening's Super Cup Final at Alinma Bank Stadium in Saudi Arabia.
Alvaro Arbeloa replaces Xabi Alonso as Real Madrid boss
According to the club's official website, Alonso and Real Madrid reached a 'mutual agreement' to end his time in the dugout.
"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", a statement read.
"Our club thanks Xabi Alonso and his entire technical team for their work and dedication during this time, and wishes them the best of luck in this new stage of their lives."
As a result, a decision has been taken to appoint a former Liverpool defender and one of Alonso's ex-teammates as his replacement.
Alvaro Arbeloa comes in as first-team boss at Santiago Bernabeu, stepping up from the club's Real Madrid Castilla 'B' team.
An official Real Madrid communication read: "Álvaro Arbeloa has been the manager of Castilla since June 2025, and has spent his entire coaching career in Real Madrid's youth academy since 2020. He managed the Infantil A team in the 2020-2021 season, winning the league title, the Cadete A team in 2021-2022, and the Juvenil A team from 2022 to 2025.
"As Juvenil A manager, he achieved the treble in 2022-2023 (League, Copa del Rey, and Champions Cup) and the League title in the 2024-2025 season."
