Real Madrid director Miguel Angel Portugal has taken charge of the Castilla team after Michel's dramatic resignation yesterday.
Michel quit the coaching post in a rage and accused president Ramon Calderon of not caring about the second-string team, nor the young players coming through the system.
Calderon reacted last night: "If he intends to resign, I'll say the door will always be open to him at this club. I must say that he was a player who gave much to this team.
"(Predrag) Mijatovic had much confidence in him and seems to continue to do so. If for some reason he was not happy, I will have to accept it."