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The Los Blancos coach left his post following the Spanish Super Cup defeat to Barcelona.
Real Madrid have confirmed the departure of head coach Xabi Alonso with immediate effect.
The 44-year-old was only in charge of the club for eight months but endured a difficult period in charge of the Spanish giants.
Madrid were on the verge of a Spanish Super Cup defeat against rival Barcelona on Sunday evening, a match which proved to be the final straw for the former Bayer Leverkusen boss.
Former Madrid defender Alvaro Arbeloa has taken over at the Santiago Bernabeu.
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