The exentrenador of Tottenham and Sevilla, Juande Ramos, replaced the 59-year-old German, who was fired just six months after driving to Madrid to its 31st title in Spain.
The team merengue up fifth in the Spanish league, nine points of his arch Barcelona, for the duel on Saturday. Schuster said on Sunday after losing 4-3 to Sevilla to Real Madrid will try to play a good game but indicated that it is the season of "Barca".
"The Madrid is a team that has to play all their matches with maximum motivation," said Ramos, who will take the reins for the remainder of the season.
"Barcelona are playing really well, but Real Madrid is playing well enough to not give up the victory in any stadium in the world," he added.
Ramos is the eighth helmsman of the Spanish champion since the dismissal of Vicente del Bosque (today's technical Spanish team) in 2003.
His first game will be at the helm Wednesday morning against Zenit St Petersburg for the Champions League.
The sports director Pedja Mijatovic said today after a meeting Tuesday with the board of directors, Schuster and the team reached an amicable agreement.
"We talked about all the difficulties we had in the past few months ... and we decided to make this decision, "said Mijatovic. "The accepted with great humility."
Schuster arrived at Madrid in July last year from Getafe to replace Italian Fabio Capello, who was dismissed after driving to Madrid to their first league title in four years.
Schuster, who had contract until 2010, repeated the championship with 18 points ahead of Barcelona.
"Last year we did a great job and we hoped that things would work, but as you know in football there are gusts that can not permit," said Mijatovic.
Madrid, already ranked the quarter finals of the Champions League, lost three of their last four duels in Spain and has been hit by a spate of injuries.
Just three weeks ago, the director of the Madrid supported the continuation of Schuster.
But Schuster's comments about the duel with Barcelona, with which almost threw in the towel, was the straw that filled the cup.
"You can not now win at the Camp Nou," Schuster said after the match against Sevilla.
The "Barca" is unbeaten in its last 20 matches in all competitions.
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