RB Leipzig and coach Ralph Hasenhuettl parted company on Wednesday after failing to reach agreement on a new deal despite success with the team.
The Bundesliga club said it wanted Hasenhuttl to stay until his contract expired next year but "this did not meet the wishes of the 50-year-old Austrian."
"He did not want to go into the upcoming season without an extension to his current contract," Leipzig said.
"Therefore, both parties mutually agreed to end the cooperation after two very successful years."
Hasenhuettl, who took over the newly promoted side in 2016, led Leipzig to second place and the UEFA Champions League in its debut Bundesliga season.
Faced with the added burden of European football in its second season, Leipzig still clinched sixth place to secure a spot in next season's UEFA Europa League.
Hasenhuettl reportedly met with Leipzig chief executive Oliver Mintzlaff and sporting director Ralf Rangnick for talks on Tuesday, but failed to get the reassurances he wanted.
Rangnick had said on Sunday that Hasenhuttl would still be in charge next season, but the breakdown in trust between the parties now forces the club to look for a new coach.