Real Madrid's President Florentino Perez gestures during a news conference at Santiago Bernabeu stadium in Madrid, Spain, May 25, 2015. [Photo/Agencies]

However, this term they were eliminated in the Champions League semi-finals by Juventus while Barcelona won their fifth La Liga title in seven years. Real also lost to Atletico Madrid in the King's Cup last 16 in January.

Real won the European Super Cup and the Club World Cup but Ancelotti's failure to win any of the three trophies that make up the traditional treble was deemed unacceptable.

Perez's decision came despite strong public backing for Ancelotti from players including top scorer Cristiano Ronaldo, midfielder Luka Modric and forward James Rodriguez.

Ancelotti told the Italian daily Il Giornale on Monday he was suffering from cervical stenosis and would be travelling to Vancouver for an operation.

The condition, a narrowing of the spinal canal in the neck area or upper part of the spine, has caused tingling in his hands and was part of the reason he planned to take a year off if Real sacked him, he told the paper.

After Real announced his sacking, Ancelotti said on his Twitter feed: "I leave with the memory of two fantastic years... thank you to the club, the fans and my players."