Speaking to AS, Meléndez — who ran the Spanish FA's national coaching school for nearly 13 years and served as assistant to the senior national team — was unsparing in his assessment of the club's current predicament, placing the blame on squad construction rather than coaching alone.
"The great deficit has been the construction of the squad. Xabi Alonso was a great coach and I did not understand his departure. It was an error to sack him."
He listed the positions still requiring reinforcement.
"They need a top full-back on each flank, a centre-back, two midfielders, and someone decisive in attack. And it's not enough to find good players — to wear that badge you need mentality, personality, and a genuine understanding of what the club represents."
On the manager question, Meléndez said Raúl should never have been allowed to leave in the first place.
"I don't have a single doubt. He should have been Ancelotti's successor. That Raúl is not at Real Madrid is a mortal sin — it is like shooting yourself in each foot."
He described the 48-year-old as uniquely equipped to manage the demands of the dressing room and the institution, having absorbed the club's values from childhood.
Jose Mourinho, Lionel Scaloni, Jurgen Klopp, Mauricio Pochettino, and Didier Deschamps have all been linked with the vacancy. Reports from Cadena Cope claim Real Madrid have already made contact with Scaloni, whose Argentina contract expires after the World Cup.
Meléndez said that if Raúl is not chosen, whoever is appointed must be a figure of the very highest standing — and that not just anyone can handle the pressure the role carries.