Real Madrid's Spanish coach Xabi Alonso gestures as he gives a press conference at Valdebebas training grounds in Madrid on December 9, 2025 on the eve of their Champions League football match against Manchester City. [AFP]

Real Madrid said Monday that coach Xabi Alonso has left the Spanish giants by mutual consent, to be replaced by Alvaro Arbeloa.

A day after the team lost the Spanish Super Cup final against Barcelona, the club parted ways with the Basque coach eight months after his arrival and immediately appointed former Madrid player Arbeloa, who was coaching the reserve side.

"Real Madrid announces that, by mutual agreement between the club and Xabi Alonso, it has been decided to bring his tenure as first-team coach to an end," said the Los Blancos in a statement.

In a separate statement Madrid then announced Arbeloa would take Alonso's place, without specifying the length of the 42-year-old's contract.

"Arbeloa has been the coach of Castilla since June 2025 and has developed his entire coaching career in Real Madrid's academy since 2020," said Los Blancos.

Arbeloa's first match at the helm is a Copa del Rey last-16 visit to face second-tier Albacete on Wednesday.

The Spaniard played 238 times for Madrid between 2009-2016, winning two Champions League titles and La Liga once, among other silverware.

Arbeloa also lifted the World Cup with Spain in 2010, as well as the European Championship in 2008 and 2012, playing alongside Alonso for club and country.

Alonso joined in June, replacing veteran Carlo Ancelotti, but Madrid struggled to find consistency under the Basque coach and are second in La Liga, four points behind Barcelona.

Los Blancos were outplayed in a 3-2 defeat in Saudi Arabia on Sunday by Hansi Flick's side, the 44-year-old's last at the helm.

Alonso was close to the sack towards the end of 2025 but a run of five consecutive wins kept him in his position, until the Super Cup defeat.

Alonso had signed a three-season deal after leaving Bayer Leverkusen, until June 2028.

The team were thrashed 4-0 by Paris Saint-Germain in July in the Club World Cup semi-finals, which was an early setback for the coach.

Despite a Clasico win over Barcelona in October, it appeared president Florentino Perez had not fully warmed to Alonso, who had intended to bring a modern coaching approach to the team.

The team struggled through a run of poor form amid an injury crisis, with Spanish media reporting some players had fallen out with him and that Alonso would be ousted if they failed to beat Manchester City in the Champions League in December.

Madrid lost but the performance was solid enough that Alonso was given more time to try and save his job.

However, the defeat by Barca in Jeddah was the final straw for Madrid, who agreed a deal with Alonso for him to depart.