Aragones informed the Spanish Football Federation (RFEF) that he is not willing to renew his contract after being three years in charge.

"I've told the Federation that they should be looking for a replacement for me after the European championship," he told Spanish media on Wednesday.

"It's normal that they should look for a new direction after Euro 2008."

The 68-year-old took over from Inaki Saez in 2004, but failed to achieve a notable position with the Spanish team.

The veteran coach announced before the 2006 World Cup that he would resign if the team failed to reach the competition's quarters, but he reverted his decision after Spain were dumped out of the last 16 by finalists France.

Aragones was widely criticized in his first season in charge of Spain, for some racist remarks to Jose Antonio Reyes about his Arsenal teammate Thierry Henry.

The former Valencia coach was under-fire after the Spanish team suffered two straight defeats against Northern Ireland and Sweden in the Euro 2008 qualifiers.

Spain are currently facing a tough challenge to reach the Euro 2008, as they lie third in Group F, and they will face minnows Liechtenstein on Wednesday.