Mourinho and Valdano together in happier times in May 2010.

Real Madrid fired Jorge Valdano as director general Wednesday in what was seen as part of a Real reorganisation that strengthens Jose Mourinho's position at the Madrid club.

"We have decided to end the contractual relationship with Jorge Valdano," said Real's president, Florentino Pérez, following a meeting of the board of directors.

However, Perez dismissed media reports that the Portuguese coach had demanded that Valdano be dismissed as a condition for his staying on at the club.

"Mourinho did not make any demands. He asked for more autonomy in line with how English clubs are organised," he told a hastily-convened news conference following a meeting of the club's board of directors.

Valdano had two years to run on his current deal after taking the role following Florentino Perez's return to the club presidency ahead of the 2009-10 season.

Valdano, a former player and coach at the club, saw the importance of his role diminished throughout the season after trading barbs with Mourinho.

He had been critical of Mourinho's style of football before he joined the club and a number of comments made in the media riled the Portuguese coach, with Valdano eventually traveling separately from the squad.