Despite the reprieve, Garitano will not continue as head coach, with Eibar seeking a different direction.
"I refer you to Garitano's words. He spoke of the end of a cycle and we understand we have completed that cycle. The position of the club is that a cycle has finished and the best thing to do is to begin a new project and start from scratch," Aranzabal told reporters.
"The contribution of Garitano in the last three seasons has been extraordinary. We've had the best cycle in the club's history. But in football, the past doesn't necessarily affect your future.
"The decision taken is what's best for Eibar. We have to analyse what happened at the end of the season. We had a second round with 15 defeats and two wins, one of them in the last game against Cordoba. What we want is a hungry coach, who knows this place or can rapidly be integrated into our values."
Eibar started the 2014-15 La Liga season in impressive fashion, but their form tailed off in the second half of the campaign.