Urrita made the announcement during a joint press conference with 51-year-old Ziganda which was also attended by Bilbao's first team players as a show of unity, reported Efe.
"Cuco will no longer be the first-team head coach in the next season," Urrutia said, adding that both the president and the coach put the club's best interests above everything else.
Former Spanish international Ziganda, whose contract was initially due to expire in two years, acknowledged: "Professionally, this has not worked out, it's clear."
He was a former player for Athletic Bilbao, playing some of his best professional years (1991-1998) as a centre-forward with the Lions.
The coach revealed that he understands the decision, because "the club is the most important thing and the next coach needs everyone's support".
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
