Real Madrid has fired manager Carlo Ancelotti, club chairman Florentino Pérez announced at a news conference on Monday.
Ancelotti signed a three-year deal with the club in June 2013 after previous stints at Chelsea, Paris Saint-Germain and AC Milan.
In 2014, Madrid won the Champions League and the Copa del Rey.
This season, however, Madrid has not won any major trophies (it did with the FIFA Club World Cup in December) finished second in La Liga, two points behind rival Barcelona and getting eliminated from the Champions League by Juventus in the semifinals. Real Madrid product Alvaro Morata scored the decisive goal for Juventus.
After a season-ending 7-3 win over Getafe on Saturday, star midfielder Cristiano Ronaldo, who scored a hat trick to cap his league-best 48-goal campaign, tweeted a message supporting Ancelotti.
Though Ancelotti, 55, is expected to receive offers from several other clubs, he has said that he plans to take a year off after undergoing back surgery.