Valdano says Arbeloa will pay for Real's Champions League elimination by Bayern Munich last night. He is likely to return to his Castilla job for next season.
Valdano told Movistar+: "Regarding Álvaro Arbeloa, we need some time to know the club's position, but this is a club that we already know is very focused on results...
"If that result doesn't come between now and the end of the season, the coach will surely be one of those who pays the consequences."
The Argentina World Cup winner also said: "It is not a debate to open tonight, but the team needs the intervention of the club to strengthen some areas of the field that, I get the feeling not tonight, but throughout the season the team has been complaining about.
"The team needs signings. That's undeniable."