The stand-in boss, 50, who replaced Julen Lopetegui at the last minute before Spain’s doomed World Cup campaign, has turned down the option to return to his previous role of sports director.
The 2010 champions crashed out of Russia after losing to the hosts in a penalty shootout where keeper Igor Akinfeev was the hero.
A statement on Spain football’s official website read: “After many kilometres of walking together, the Royal Spanish Football Federation and Fernando Hierro put an end to their relationship once the participation of Spain in the World Cup in Russia ended.
“The last Spanish coach declined to return to his previous position as sports director of the RFEF to seek new horizons and undertake new professional challenges.
“After two stages as sports director of the Federation, the first between 2007 and 2011 – coinciding with the best stage of the National Soccer Team, which won the 2008 European Championship with Luis Aragonés as coach and the 2010 World Cup with Vicente del Bosque- and the second from November 2017 until now, the RFEF wants to thank Fernando Hierro for his commitment and sense of responsibility when he takes the lead in the national team in extraordinary situations as well as in the performance of all his duties, which will always be his home.
Koke’s spot-kick was saved by Russia keeper Igor Akinfeev as Spanish hopes died at the Luzhniki Stadium.
Credit : The Sun