However, the president of the Spanish FA (RFEF) Luis Rubiales revealed that the decision was made without his knowledge and that he was only informed of Madrid's impending appointment five minutes before the official announcement.
The news is a remarkable twist on the eve of the World Cup, with Spain - one of the favourites to lift the trophy prior to this development - due to kick off their campaign against Iberian rivals Portugal on Friday evening.
Rubiales confirmed that the players attempted to save Lopetegui's job, but insisted that the RFEF were unable to accept the way Lopetegui handled the situation.
"We have been forced to dispense with the national coach, we wish him the best of luck, what the Spanish team gets, will have to do with the work he has developed," Rubiales told reporters at a press conference in Krasnodar.
"The negotiation has happened without any information to the RFEF, just five minutes before the press release. There is a way of acting that must be fulfilled. We have to work on a series of decisions that come two days before the beginning of the World Cup. There is a lot to do."
More to follow.