Valverde only took over at Villarreal in the summer following Manuel Pellegrini's departure to Real Madrid.

However, the Yellow Submarine, who finished fifth last year, have had a disappointing season and are 10th in the table following today's loss.

mfl

(corrected repetition - amending details about Hugo Sanchez in the final paragraph)

A statement on the club website read: "Villarreal have cancelled their contract with coach Ernesto Valverde after the defeat picked up at El Madrigal against Osasuna (0-2).

"In the hope of confirmation of a new coach, the club thank the coach from Extremadura for his services and wish him the best of luck in his sporting career."

Villarreal have been linked with former Getafe coach Michael Laudrup and the club added they will confirm Valverde's replacement in the next few days.

The Yellow Submarine had only lost once in their previous seven league games - a run of results which included a draw at the Nou Camp against Spanish and European champions Barcelona.

However, Valverde has paid the price for an inconsistent season which has also seen them crash out of the Copa del Rey to second division Celta Vigo.

The 45-year-old becomes the sixth coach to lose his job in the Primera Division this season following the departures of Abel Resino (Atletico Madrid), Juan Carlos Mandia (Racing Santander), Marcelino Garcia Toral (Real Zaragoza), Hugo Sanchez (Almeria) and Jose Angel Ziganda (Xerez).