“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.
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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)
