Real Madrid have sacked coach Rafa Benitez after less than half a season in charge and promoted former France and Real great Zinedine Zidane from the B team to replace him, president Florentino Perez said on Monday.

Perez announced the dismissal of Benitez, who had a contract until June 2018, following a board meeting and Zidane was present at the president's news conference at the Bernabeu stadium.

"Firstly I would like to thank the club and the president for giving me the chance to coach this team," Zidane said.

"We have the best club in the world and the best fans in the world," the Frenchman added.

The Spanish club's president Florentino Perez called a board meeting for Monday, and is expected to be followed by a press conference at 7:30 p.m. local time.

Directors of the club have been holding talks throughout Monday after Madrid failed to beat Gary Neville's Valencia on Sunday evening, drawing 2-2.

Rafa Benitez had taken over the club just seven months ago.

Real Madrid is currently third in La Liga behind Atletico Madrid and Barcelona.