The Primera Liga side made the announcement on their Web site www.valenciacf.es.

Despite that defeat Valencia remain in fourth place in the standings just four points behind leaders Real Madrid.

Earlier in the week the team slipped to a surprise 2-0 defeat away to Rosenborg in the Champions League and are in third place in Group B, four points behind leaders Chelsea.

The club have named reserve team boss Oscar Fernandez as a caretaker coach.

Sanchez Flores, a former Real Madrid and Valencia player, took charge of Valencia at the start of the 2005-06 season, following a successful spell in charge of modest Primera Liga side Getafe.

He steered Valencia to a third-place finish in the league in his first season in charge and fourth place last term despite a string of injuries to leading players.

Valencia were the most successful Spanish team in last season's Champions League, reaching the quarter-finals where they lost narrowly to Chelsea after a last-minute strike from midfielder Michael Essien. -- REUTERS