Roberto di Matteo has stepped down as coach of Schalke after a disappointing season that saw the Gelsenkirchen outfit finish only sixth in the Bundesliga, a club statement announced on Tuesday.
The Italian had been in charge since October after his predecessor Jens Keller was sacked, but last Saturday's 2-0 defeat at home to strugglers Hamburg looks to have been the last straw for Schalke's board.
The 44-year-old, who coached Chelsea to the 2012 Champions League title, had steered the Royal Blues up from 11th when he took charge to third in the table in February.
But a poor run of results saw them surrender a direct spot in the Champions League and their latest defeat left them sixth in the table and in the Europa League next season.
Di Matteo announced he was resigning after a meeting with club chairman Horst Heldt during which they failed to reach agreement on the way forward