Michel's five-year tenure at Girona has come to an end after the club confirmed he would not continue with his duties next season after their relegation from LaLiga.
He had already overseen Girona's promotion from the Segunda Division in 2021-22, but will not attempt to get the Blanquivermells back into the top flight this time around.
Girona were relegated to the second tier last Saturday following a 1-1 draw with Elche on the final day, joining Real Oviedo and Mallorca in the LaLiga relegation zone.
During Michel's time in charge, he guided Girona to the Champions League in 2023-24, though they were eliminated in the league phase after picking up just one victory.
He oversaw 221 matches across all competitions, winning 91 of those (D47 L83), averaging 1.45 points per game.
"Having taken charge in the summer of 2021, Michel has been a key figure in the sporting growth and consolidation of Girona FC's playing style," the club said in a statement.
"Over his seasons at the helm of the first team, he has managed a total of 221 official matches, becoming one of the most important coaches in the club's recent history.
"In his first season, he led the team to a memorable promotion to LaLiga through the play-offs, culminating in Tenerife on a night that has become historic for Girona fans."
Míchel Sánchez no continuarà al Girona FC.
— Girona FC (@GironaFC) May 28, 2026
El Club vol desitjar al tècnic i al seu staff els majors èxits tant en l’àmbit professional com personal en el futur.
https://t.co/6UzUbZLzW0 pic.twitter.com/epIrrpQyer
The news of Michel's departure follows a day after it was reported that the Spaniard was closing in on a full agreement to become Eredivisie giants Ajax's new manager.
Ajax finished fifth in the league and had three different people at the helm, with John Heitinga sacked in November before Fred Grim and Oscar Garcia took interim charge.
Michel had also been linked with a switch to Bayer Leverkusen, but a move to the Bundesliga failed to materialise.