“From the 1919/20 season, the current coach will take up a prominent role in the sporting direction of Sevilla, which is headed up by Monchi,” read a club statement.
The club did not give any details on a replacement.
Caparros has been in charge of the five-time Europa League winners for 167 games and led the club to a sixth-place finish in La Liga this season and Europa League qualification.
They missed out on a Champions League spot by two points after losing two of their last three games of the campaign.
Caparros said last month that he had been diagnosed with leukaemia but vowed to continue in his job.
(Reporting by Joseph Cassinelli; Editing by Ken Ferris)
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