The 52-year-old took over in 2018 and led Spain to the Euro 2020 semi-finals.
The Spanish Football Federation has also confirmed the resignation of Luis Enrique. Spain Under-21 coach Luis de la Fuente is likely to become the new manager following talks set to take place early next week.
Spain beat Costa Rica 7-0 in their group opener in Qatar, but drew 1-1 with Germany and went on to lose 2-1 to Japan. They were knocked out of the World Cup on penalties after a 0-0 draw in 120 minutes.
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