Real Madrid have replaced coach Bernd Schuster with former Sevilla and Tottenham Hotspur manager Juande Ramos, sporting director Predrag Mijatovic said.
Mijatovic told a news conference at the Bernabeu stadium that he met Schuster earlier on Tuesday and the pair agreed the German's contract should be terminated.
Ramos has agreed a six-month contract through June 2009 with an option for an extension, he added.
"I met with Schuster this morning and we discussed the problems of the past weeks and months and by mutual agreement took this decision," Mijatovic said in a reference to the Primera Liga champions' poor run of form.
Ramos, speaking at the same news conference, said he was excited about the new challenge.
"This is the dream of all soccer coaches," he said. "Real Madrid has the quality to win in any stadium in the world."
Run down on Ramos
Factbox on Juande Ramos, who was appointed coach of Spanish champions Real Madrid on Tuesday to replace sacked German Bernd Schuster:
- - Born on 25 September 1954 in Ciudad Real, Spain, Ramos made his name in coaching by steering unfashionable Madrid-based club Rayo Vallecano into the top flight in his first season in 1998-99, and led them to a ninth place finish the next year.
- - They were rewarded with a UEFA Cup place through the Fair Play draw and reached the quarter-finals in their debut season in European competition. - - Kept Rayo in the Primera Liga but moved on to Sevilla's bitter city rivals Real Betis in 2001.
- - Failed to agree a contract extension with Betis after taking them to sixth in his first season and left for a brief five-game spell at Espanyol before departing over differences with the board. Led modest Malaga to 10th in the league in 2004-05.
- - Took over from Joaquin Caparros at Sevilla in 2005 and won five trophies in two years. Sevilla secured back-to-back UEFA Cups with final wins over Middlesbrough and Espanyol and won the King's Cup in June 2007.
- - They beat Barcelona to win the European Super Cup in 2006 and Real Madrid to lift the Spanish Super Cup in 2007. Ramos steered Sevilla into the Champions League group stage for the first time at the beginning of last season, on the back of a third-place finish in the Primera Liga.
- - Linked with a move to Tottenham Hotspur during the close season after media reports suggested the club's manager Martin Jol no longer enjoyed the confidence of chairman Daniel Levy.
- - Resigned from Sevilla and was appointed manager of Tottenham on October 27, 2007, after Jol was sacked.
- - Made a relatively good start to his Spurs career, steering them to a 2-1 victory over Chelsea in the League Cup final in February 2008.
- - Spurs then suffered their worst ever start to a league season in 2008-09 without a win in their first eight matches.
- - Sacked on October 25, 2008, with Tottenham bottom of the Premier League after two draws and six defeats. Spurs had won only six matches out of 26 in all competitions since the League Cup victory.
- - Swiftly returned to coaching, replacing Bernd Schuster at Real Madrid on Dec 9.