Julen Lopetegui, whose signing for Real Madrid was announced on the club's website on Tuesday, had been at the helm of the Spanish national squad since 2016, and remained unbeaten in 20 games.
Spanish Spanish football association RFEF President Luis Rubiales said in a shock presser that he had lost confidence in Lopetegui after learning about the news five minutes before it was made public by Real Madrid.
“We have been forced to dispense with the national coach. We wish him the greatest of luck,” said Rubiales.
“The negotiations have occurred without any information to the Spanish FA and we were informed just five minutes before the press release. There’s a way to act that needs to be fulfilled.”
In a never seen before scenario, Spain will walk into its World Cup opener against long-time rivals Portugal on Friday without an official manger.
“When we know we will tell you. “I have spoken with the players and I can guarantee they will do everything, along with the new coach, to take the team as far as possible. To win is very important, to have the best coach very important, but above everything is acting in the right way. Maybe this is tough now, but in the end it will make us stronger,”said Rubiales on being asked the replacement of Lopetegui.
Former Real Madrid captain Fernando Hierro, who is currently Spain's sporting director, and Spain under-21 coach Albert Celades have emerged as the principal candidates.
Lopetegui was appointed Spain coach in July 2016 and never tasted defeat in the job, leading the team through 20 unbeaten games ahead of the World Cup.
La Roja were among the favourites to lift the trophy this summer but the astonishing developments of the past two days could have a devastating affect on their chances.
There were fears his appointment could open up old divisions between the Real Madrid and Barcelona factions in the Spain squad.
For the first time since 2006, there are more players from Madrid in a Spanish squad for a major tournament, with a six-strong Real contingent and just Gerard Pique, Jordi Alba and Sergio Busquets from Barca.
However, according to reports in the Spanish media, the players tried to intervene at the last minute to prevent Rubiales sacking Lopetegui.
Lopetegui had a short playing career at both Madrid and Barcelona as a reserve goalkeeper.
However, his coaching career had been far from distinguished before being handed the role as Spain coach after a last-16 exit at Euro 2016 brought Vicente del Bosque's eight-year reign to an end.
After short spells at Rayo Vallecano and with Madrid's youth team Real Madrid Castilla, Lopetegui enjoyed a successful time with Spain's under-19s and under-21s.
He then spent 18 months in charge of Porto but was sacked after exiting the Champions League at the group stage in his second season.