The decision was announced by Jose Manuel Edwards, who is in charge of the club's finances.

"We have decided to terminate Capitano's contract and we are ready to look for a new coach for the team," he said.

It had been reported that the Argentinian boss had handed in his resignation, but he explained to El Mercurio newspaper that was not the case.

He said: "I have not handed it any resignation."

Cristian Romero, who is in charge of the club's youth system, will take care of first-team affairs on a temporary basis while the board look for Capitano's successor.

"I will negotiate only with coaches who are unemployed," Edwards added. "I will not talk to any coach who is currently working, and his contract will run to until the end of the current championship."

Romero's debut will be next weekend, when Universidad de Chile visit O'Higgins in the Clausura's ninth round.

Universidad de Chile are 19th in the 21-team table, with one win in six games.