Xabi lost his job on Monday, having arrived in the summer from Bayer Leverkusen.
Despite his swift demise at Real, AS says Xabi's reputation remains intact for powerbrokers inside the game.
Watching the situation are Liverpool and Manchester City in England. A former Reds star, Xabi turned down the Liverpool job before Arne Slot's appointment last year and remains on their radar.
Meanwhile, at City, Xabi is seen as a natural fit should Pep Guardiola decide to step down at the end of this season.
Further, Bayern Munich also covet the Spaniard and will move for him if coach Vincent Kompany is tempted back to England in 2026.
