Real Madrid's new director of football Arrigo Sacchi says he has not come to the club with a magic wand in his hand, but is confident the team will recover after a miserable year of underachievement.

"For me it is a great honour to be here at a legendary club and my aim is to work as hard as I can to help it improve," the former AC Milan and Italy coach told a news conference in Madrid on Thursday.

"I'm not a magician, but I do have confidence in myself, the players and the club and believe that we will get out of this situation. I'm a positive person who always sees the glass as half full rather than half empty."

Sacchi watched from the stands as Real slipped to a 1-0 defeat at home to Sevilla on Wednesday, a loss that meant they dropped to fifth place in the Spanish Primera Liga, 13 points behind leaders and arch-rivals Barcelona.

"If we play like we did yesterday then we will lose the league," he said. "But last season Barcelona were 18 points behind us at this stage and ended up finishing ahead of us so there is room to manoeuvre if we change.

"There is no doubt that the club is in a difficult situation and we all have to work together to try and resolve the problems it now faces. Everyone at the club is clear that things can and should improve."

The 58-year-old Italian, who had been technical director of Serie A side Parma for the last three seasons, gave his backing to Real's coach Mariano Garcia Remon who has come under heavy pressure after the team's recent poor performances.

"Mariano is a very loyal person, a servant of the club and we have full confidence in him. I don't want to coach anymore and there is no question of me taking over the coaching here."

Sacchi also dismissed suggestions that many of the so-called Galacticos in the Real squad are now past their best.

"I don't think a cycle has ended at Real," he said. "Real has players that every team in the world wants. We just have to make sure that they give everything for a club which is perhaps the most famous in the world.

"Nowadays it is impossible to have a quality team that does not have star players and for a club like Real Madrid it is vital not only to win but also to play well to give the fans something to cheer about."