Vicente del Bosque said on Friday that he will step down as manager of world and European champions Spain after the 2014 World Cup.
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Angel Villar, president of the Spanish football federation, had been hoping that Del Bosque would continue until 2016 but the taciturn coach ended those hopes on Friday.
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"My last responsibility as national manager will be at the World Cup in Brazil," he said. "Afterwards, maybe I might continue to work for the federation in some representative capacity, but not as national manager."
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Del Bosque, 62, took over from Luis Aragones just after Spain had won Euro 2008. He guided La Roja to their first ever World Cup triumph, in 2010, then to success at Euro 2012.
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He has won 58 out of 70 games, and Spain are well placed to qualify for the 2014 World Cup after a crucial 1-0 win away to France in March, in qualifying group I.
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Spain are one point above France atop the group with three matches left.
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Del Bosque - who was made a marquis by King Juan Carlos after the World Cup triumph - added that his Spain team "is well balanced between players from Barcelona and Real Madrid, plus several players from abroad, particularly the Premier League.
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"Now we are focusing on the Confederations Cup (to be played in Brazil in June) and that is our next objective. As the good sportsmen that we are, we should always be looking ahead rather than stay in the past, however successful that past was." Spain have been draw into Group B, along with Uruguay, Tahiti and Nigeria.
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When asked about the thrashings suffered this week by Barcelona and Real against Bayern Munich and Borussia Dortmund, in the semifinals of the Champions League, he replied: "They still have the chance to turn the ties around in the second legs, but it is true that nobody expected these results because Spanish football is in a privileged position at the moment.
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"Even so, we cannot draw any conclusions before the second legs, and we should not become too pessimistic."
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He said that "German football has adapted itself well to the demands of the new times. They have added possession football to their traditional power football, and this is what makes their national team a candidate to win the World Cup."
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Del Bosque also cited Argentina as a candidate in 2014. "They will be a difficult team to beat in Brazil.
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They have a strong attack and also (Fifa World Player) Lionel Messi, who can pull apart any defence."
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He then turned his attention to the Brazilian national team, saying: "I have always been a great admirer of Brazilian football. They will be the favourites because they will be playing at home."
He has been a fantastic coach for Spain. The cups he has won for them aint few at all. He would definately be missed