Real Madrid have officially parted ways with head coach Alvara Arbeloa after the two parties came to a mutual agreement. 

Arbeloa had already said he would be leaving Madrid at the end of last season, but Los Blancos confirmed the news on Tuesday, paving the way for Jose Mourinho's return. 

The 43-year-old took charge of 28 matches across all competitions since replacing Xabi Alonso in January, winning 18 of those (D2 L8). 

However, the Spaniard, who made 233 appearances for Madrid as a player, oversaw a second campaign without a major trophy, with Clasico rivals Barcelona winning LaLiga. 

Madrid were also dumped out in the Champions League quarter-finals by Bayern Munich under Arbeloa's stewardship. 

"Real Madrid C. F. and Alvaro Arbeloa have reached an agreement to end his time as coach of the first team," a club statement read. 

"Real Madrid is very grateful to Alvaro Arbeloa, who, throughout his career at the club, since he arrived at our academy, has always shown loyalty, commitment and professionalism. His figure represents an example of the values of our club.

"Real Madrid, which will always be their home, wishes Alvaro Arbeloa and his entire family the best of luck in this new stage of their lives."

Arbeloa's exit all but confirms a return for Mourinho, who won LaLiga, the Copa del Rey and Supercopa Espana during his three-year stint with the club between 2010 and 2013.

Club president Florentino Perez had vowed to bring Mourinho back to the Spanish capital as part of his campaign promises that led to his re-election on Sunday.

Perez's campaign also promised to include a high-profile signing, with many believing that would be Bayern's Michael Olise after a stunning individual campaign in 2025-26. 

However, Madrid confirmed on Tuesday that they had a €150m bid for Julian Alvarez rejected by Atletico Madrid. 

Atletico released a statement of their own regarding the situation in a fiery response, rejecting the idea that they had thanked Madrid for their offer for Alvarez. 

"Official statement setting out our clarifications regarding the official statement from our neighbours Real Madrid," Atletico wrote.

"1. You cut the bit of the Pope's video where he said he was also an Atleti fan.

"2. You may have confused politeness with gratitude, but let there be no doubt: we are not grateful to you for anything.

"3. We are not considering or evaluating any offers for Julian. 4. How could we not get on well, when you make us laugh even more than Barcelona.

"P.S. Taking advantage of the good relationship with your new president, let's see if you stop 'stealing' players from our Academy. Thanks a lot!"