Edin Terzic has resigned as Borussia Dortmund coach, the Champions League runners-up said on Thursday in a surprise statement.
"The 41-year-old...asked Dortmund to terminate his contract with immediate effect, and after discussions, the club agreed to his request," the statement read.
Terzic won the German Cup with Dortmund in 2021 as interim coach and then helped them finish runners-up in the Bundesliga in 2023 and reached the Champions League final this month when in permanent charge.
The 2-0 defeat at Wembley turned out to be his final match in charge after Dortmund surprised European football by progressing to the showpiece.
Terzic, a boyhood Dortmund fan, said: "It is incredibly painful for me to say this to all Black and Yellow fans, but today I am parting company with Borussia Dortmund.
"After the game at Wembley, I asked for a meeting with the club’s senior management team, because after 10 years at BVB – including five on the coaching staff and two and a half as head coach – I feel that the club’s new era should begin with a new man on the touchline."
Losing out on the Bundesliga title to Bayern Munich in 2023 with virtually the last kick of the season was a hammer blow to Terzic, who cried openly on the pitch.
He was more composed after the Champions League final defeat but after managing only a fifth-place finish in this season's Bundesliga, still enough for a spot in next term's revamped Champions League, the German-Croatian has decided to move on.
"Everyone close to me knows that this has been a very difficult decision for me to take over the last few weeks, but after intensive discussions my fundamental feeling has not changed," he said. "I wish Borussia Dortmund the very best, and this isn’t goodbye – it’s seen you soon."
He took over permanently in 2022 after a one-season experiment with Marco Rose did not work out. It allowed Terzic to step back into the coaching role having been technical director after half a season in temporary charge in 2021 following Lucien Favre's dismissal.
Borussia Dortmund chief executive Hans-Joachim Watzke said: "Edin Terzic has done an outstanding job in his time at BVB, and we all owe him a huge debt of gratitude. Edin and I will always remain friends."
Lars Ricken, the club's new managing director for sport, now has a big decision ahead of him when trying to recruit a new coach - with no immediately obvious candidate.