In a move that was widely anticipated in the Spanish press over the last few weeks, Madrid sporting director Predrag Mijatovic confirmed at a press conference on Thursday that Capello would not be continuing in the role.

"As sporting director I have made a report about all that happened last season," Mijatovic said following a meeting by the club's board.

"With that report, the president and board of directors have taken the unanimous decision not to continue with Fabio Capello as coach."

Capello was unveiled by Madrid last summer, handed a three-year contract by newly-installed Real president Ramon Calderon and tasked with ending one of the worst barren spells trophy-wise in the club's illustrious history.

Prior to Capello, Madrid had employed five coaches - Carlos Queiroz, Jose Antonio Camacho, Mariano Garcia Remon, Wanderley Luxemburgo and Juan Ramon Lopez Caro - since Vicente del Bosque led the team to their last league title in 2003.

Capello was a man with a proven track record, having won numerous titles in Italy at AC Milan, Roma and Juventus.

He also guided Madrid to the 1997 Primera Liga crown during his previous spell in charge at the Bernabeu - a tenure that also lasted just one season.

The Italian, who is currently on holiday, received plenty of criticism during the last 12 months for some dismal results and insipid performances from his new-look Madrid side - especially at the club's Santiago Bernabeu stadium.

He also hit the headlines in January after announcing David Beckham would never play for the team again following the midfielder's decision to join the Los Angeles Galaxy at the end of his Madrid contract this summer.

Capello ended up recalling the former England captain though and, after Beckham had produced some scintillating performances to help Madrid climb to top spot in La Liga, the Italian admitted he had made a mistake in ostracising the 32-year-old.

Capello's final competitive game in charge of Madrid proved to be a memorable one, with Real battling back from a half-time deficit to beat Real Mallorca 3-1 at home and pip arch-rivals Barcelona to the title on the final day of the season.

That sparked wild scenes of celebration at the Bernabeu, and later at the Spanish capital's famous Cibeles fountain in the centre of the city where thousands of people congregated.

However, it was not enough to save the 61-year-old Italian from being cast aside less than a fortnight later.

Mijatovic said: "It was a difficult decision to take. Capello worked well last season, obtaining a title after several years.

"I want to thank Fabio Capello for his work, but looking at the future we do not think that he is the right person to lead us.

"As like last year I took the decision to put faith in Capello, now I have the right to decide."

Mijatovic refused to comment on who might replace Capello on the Madrid bench.

Media reports suggest former Madrid midfielder Bernd Schuster is favourite to take over from the Italian, although the German's current club Getafe announced on Thursday morning they had no agreement in place with any other club regarding the coach.

Madrid president Calderon also said last week that Michael Laudrup, Ronald Koeman and Arsene Wenger were among the other coaches that they had looked at.

Mijatovic said on Thursday: "We have time to look for the right person.

"We have a very clear profile of who we are looking for. There are several candidates. But in respect to Capello and the future coach I am not going to say who they are.

"There are many coaches who would like to manage a club like ours.

"Schuster is one of the coaches who has enough of the things that we are looking for, but we all know that he has a contract with Getafe."