Felix Magath has resigned from his post as manager of Wolfsburg with assistant coach Lorenz-Gunther Kostner taking his place.
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The Wolves sit at the foot of the Bundesliga table and are on a four-match losing streak. Magath's resignation brings to an end his second stint at the club.
He led the Wolves to the title in 2009 before taking up the vacancy at Schalke that preceded a return to his beloved club having been sacked as Royal Blues boss in March 2011.
"Felix Magath took the first step in explaining to the board of directors that the club has a predominant place in his heart," read a statement from Wolfsburg.
"He therefore offered to be relieved of his duties since he did not want the club to suffer.
"The board regrets that this situation has arisen, although both parties had tried everything in recent weeks to be successful. Since this did not succeed, this step has been agreed upon mutually.
"Lorenz-Gunther Kostner will take charge of the first team with immediate effect.
"We would like to express our gratitude to Felix Magath," said the club's chairman Francisco Garcia-Sanz.
"During his two terms at Wolfsburg, he has shown enormous engagement and achieved great things for our club, the city of Wolfsburg and sport in the whole region.
The focus now lies on our coming games in which we need to get back in touch with midtable in the Bundesliga."
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