Fernando Hierro is expected to follow Carlo Ancelotti out of Real Madrid.
Former Real coach Ancelotti was sacked by Real on Monday.
Marca says Hierro has decided to move on after working this season as an assistant to Ancelotti.
Hierro won't be offered the sporting director's post by Real and the former club captain is expected to seek a senior coaching post elsewhere.
The Real legend returned after front office spells with the Spanish Federation and Malaga.