Dismissed from the Spain job on the eve of the World Cup for negotiating with Real Madrid, Lopetegui's tenure at the Bernabeu is reportedly over after a 2-1 home loss to Levante left the three-time reigning Champions League winners with 14 points through nine matches.
Los Blancos are now on a five-game winless run in all competitions, losing four times in the process.
Mid-table Levante seemed the ideal opponent to face, but with a front-line led by the precocious Jose Luis Morales, the visitors had no intention of playing for a point. The spot-kick was eventually awarded, after consultation with the video assistant referee.
Sevilla destroyed them 3-0, Atletico Madrid held them to a 0-0 draw and surprise package Deportivo Alaves beat them 1-0.
Lopetegui faces a decisive couple of weeks, taking on Levante in La Liga, then Viktoria Plzen in the Champions League, before a testing Clasico at Camp Nou.
Also helped by his woodwork which Madrid struck three times, Olazabal made 11 saves, his best being a close-range block with his leg on Vazquez just before the break. But the decorated France worldwide, fresh from winning the 2018 FIFA World Cup, has struggled this season and was particularly culpable in this game.
Varane failed to track the run of Morales, who collected Sergio Postigo's long ball forward before rounding Thibaut Courtois and slotting into an empty net.
The current scoreless run ended 16 minutes later when Marcelo pulled one back.
- Levante's Roger Marti has scored five goals in La Liga this season, more than any other Spanish player in the competition (alongside Iago Aspas).