"After the conversations we have had with our coach Jose Mourinho we have arrived at an agreement to end our working relationship at the end of this season," Perez told a press conference yesterday.
"The coach and the club agreed this is the right moment. I want to thank Jose Mourinho for the work he has done in the last few years."
Mourinho, who has been strongly linked with a return to Chelsea - a team he managed between 2004 and 2007, has endured a torrid final season in charge of Los Blancos culminating in Friday's defeat by Atletico Madrid in the Copa del Rey final that ensured Real end the season without a major trophy.
"No one has sacked anyone, it has been a mutual agreement," Perez said.
"It is not nice for anyone to have to leave but it is also true that after three years we both decided it was the right moment to break this relationship.
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