BILD says Raul will resign as Real Madrid Castilla coach and relocate to Germany, where he aims to continue his career.
The Real Madrid legend and former Schalke striker has no move lined up, but is willing to take a job in the top two divisions in Germany.
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Raul sees Germany as the best chance to take the next step in his coaching career.
Raul's departure is expected to see Alvaro Arbeloa to take charge of Castilla from next season.