The 43-year-old confirmed his departure at his press conference on Friday and will not be replaced by a known internal candidate. José Mourinho is expected to be formally announced as the new head coach in the coming days, with negotiations reportedly concluded.
The first-team squad, which had grown increasingly frustrated with Arbeloa's management during a difficult season, received the news with relief. Madrid finished second in LaLiga, were eliminated from the Champions League by Bayern Munich at the quarter-final stage and suffered an embarrassing Copa del Rey exit against lower-league Albacete. Arbeloa arrived in January to replace Xabi Alonso but could not alter the team's trajectory.
The picture is very different at Valdebebas, where Arbeloa's departure has landed badly. A member of the academy structure told Marca the first team had "exhausted him completely," with significant regret expressed at losing a coach who spent five years building one of the most productive periods in La Fábrica's recent history.
Arbeloa took charge of Real Madrid Castilla after an impeccable record running the club's junior teams and modernised the performance departments across the youth setup.
Under his leadership, academy products including Thiago Pitarch, Chema Andres, Jacobo Ramón and Yusi either made their debuts in the first team or significantly raised their market value. Nico Paz, who is now one of the most sought-after young midfielders in Europe following his breakthrough at Como — and whose buy-back clause Real Madrid are expected to exercise this summer — developed directly under Arbeloa's management at Castilla.
The estimated transfer value generated by the players developed or sold during his academy tenure is reported at around £68 million.
His five months managing the senior squad produced a record of nine wins, seven draws and nine defeats in all competitions. The Copa del Rey exit to Albacete and the structural tensions with senior players ultimately made his position untenable.
Whether the door back to Real Madrid remains open — in any capacity — is a question that will only be answered in time.