The national team's then sporting director Fernando Hierro stepped in to replace him and led Spain to the last 16 where they lost to hosts Russian Federation on penalties, before stepping down after the tournament.
Hierro announced on Sunday that he would not be continuing as Spain manager, or returning to his post as sporting director.
Luis Enrique is favourite to take over as Spain manager.
Luis Rubiales, head of the Spanish FA, will reportedly suggest appointing Luis Enrique as the new boss in a meeting on Monday morning, although Roberto Martínez and Quique Sánchez Flores have also been considered as potential candidates.
The Royal Spanish Football Federation (RFEF) have scheduled a news conference on Monday to announce changes to the organisation's structure.
Oil slips as USA crude stockpiles show surprise build
OPEC together with a group of non-OPEC producers led by Russian Federation started to withhold output in 2017 to prop up prices. If anything, they are driving prices higher as the US defends many of their members for very little $'s.
A team with a history of success, a talented squad and a distinctive style of playing, had just failed to win a trophy for the first time in six years.
Despite been out of work since quitting the Nou Camp outfit, the 48-year-old football tactician has been linked with Arsenal after Arsene Wenger resigned at the end of last campaign.
"I don't think you can talk about the team breaking down or collapsing.
We liked his commitment and he has turned down better paid jobs to coach the Spanish national team".
Spain face England on September 8 at Wembley in their first game of the UEFA Nations League, after being drawn in a group which also contains Croatia.