He walks away from the club at a high point after Madrid beat Liverpool 3-1 in the Champions League final in Kiev.
Zidane's shock announcement was made at a hastily arranged press conference on Thursday lunchtime, with the French legend confirming his intention to step aside from his role in an announcement few predicted. I do not want to start a season and have a bad time, I want to end with Real Madrid when everything is going well.
Real Madrid president Florentino Perez was present alongside Zidane, who took charge in January 2016.
"Of course it can be a "see you later" (rather than goodbye) because Madrid has given me everything".
"That's why I chose to take this decision".
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"This club deserves to continue to win and needs a change" he said, adding that he believed the "moment has come". "I will be here close to this club all my life". They have always backed me. "I know that he was offered that position many times by the current President".
"We always want more from the players, and a moment comes when I can not ask them for more".
He leaves having guided the Spanish club to three successive Champions League titles and one La Liga success. There were tough moments during the season and although I was sometimes whistled at, I want to thank the fans. I wanted him to stay forever and I wanted to convince him to stay.
"This is a lovely moment as we have just won a third straight Champions League and I have now reflected and made this decision".
"But he did it so well and I think he's nearly surprised himself, so he went "this is it, this is finished..." "I'm not here to talk about the future of this team".