Real Madrid lost the Spanish La Liga title to city rivals Atlético Madrid on Saturday by just one point after a dramatic final day of the season.
“Real Madrid CF announce that Zinedine Zidane has decided to end his current term as head coach of our club,” the Spanish club said in a statement.
“We must now respect his decision and express our gratitude for his professionalism, dedication and passion over the years and what he represents for Real Madrid.
“Zidane is one of the great icons of Real Madrid and his legacy goes beyond what he has accomplished as a coach and a player at our club.
Although he finished second in La Liga behind Atlético and reached the semi-finals of the Champions League, it has been a disappointing season for Real Madrid.
This is the first time in 11 seasons that Real have finished without lifting a trophy.
This is not the first time that Zidane has moved away from the Spanish giants, for whom he played between 2001 and 2006.
The French legend was initially hired in 2016, winning three straight Champions League titles in a row and the La Liga title once.
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He retired in May 2018 before returning 10 months later.
In his second term, Zidane won the 2019-2020 Spanish championship title and the Spanish Super Cup. However, after guiding the club to their first trophyless season since 2009-10, the 48-year-old has stepped down for the second time.