"I made the decision to not continue next year as the coach of Real Madrid", Zidane said.
"This is the right moment for everyone".
"This club needs a change to keep winning", Zidane said.
He played for three seasons there, winning two Champions League titles, and left a year before Zidane joined in 2001.
Club president Florentino Perez said: "This was a totally unexpected decision, Zidane informed me of his choice yesterday". I will be close to this club all my life, but the decision makes a lot of sense. It was not an easy decision.
"This house will be his family forever, he triumphed and won everything, as you know". They also suffered a humbling defeat to Leganes in the Copa del Rey quarter-final. The Frenchman was only in charge of Los Blancos for two and a half years and managed to win the Champions League three times in a row.
Didier Deschamps has a contract with France until 2020, but Karembeu believes Zidane has the reputation and ability to one day coach the national side. "I want to leave when everything is going well". There have been good moments, but also hard times.
"This club's history is huge, we always ask a lot of players, but there comes a moment when you think 'What more can I ask of them, after what they've done for me?' For this I think they need another discourse".
The goal, which is rated as one of the best final goals ever, was emulated by Gareth Bale's acrobatic goal in Saturday's Champions League final, where Madrid sank Liverpool 3-1 in Kiev.
Real President Florentino Pérez admitted his surprise at Zidane's decision just five days after their historic Champions League success. The former star player arrived surrounded by doubts because of his lack of coaching experience but quickly surpassed expectations.