Real Madrid have decided to sack manager Xabi Alonso with immediate effect, following defeat to Barcelona in the Spanish Supercup final. Alonso arrived in the summer, but has struggled to inspire a turnaround in play since arriving at the club.
The Basque manager left Bayer Leverkusen in the summer to join in June, where he took charge of Los Blancos after Carlo Ancelotti. Real Madrid made it to the semi-finals before an emphatic defeat in the Club World Cup, and have fallen in the final of the Spanish Supercup in the final. Currently Los Blancos lie second in La Liga four points behind Barcelona, and are 7th in the Champions League table with two games to go.

The club emitted the following statement on Monday evening in Spain, less than 12 hours after the team arrived back in Madrid following the Supercup final.
Real Madrid C.F. announces that, by mutual agreement between the club and Xabi Alonso, it has been decided to end his tenure as first-team coach.
Xabi Alonso will always have the affection and admiration of all Madrid fans because he is a Real Madrid legend and has always embodied the values of our club. Real Madrid will always be his home.
Our club thanks Xabi Alonso and his entire coaching staff for their work and dedication during this time, and wishes them the best of luck in this new chapter of their lives.
Real Madrid shortly after announced that Castilla manager Alvaro Arbeloa has taken the reins as manager for the time being. It is not clear how long his contract will be, but it is assumed that he will be in charge until at least the end of the season. Arbeloa is highly regarded within the club, and particularly by President Florentino Perez.