Borussia Dortmund head coach Edin Terzic will leave his job with immediate effect after asking for his contract to be terminated, the Bundesliga club said on Thursday.

Terzic, who took over as coach on a permanent basis in 2022, led Dortmund to the Champions League final last season where they lost to Real Madrid at London's Wembley stadium.

They finished fifth in the Bundesliga, qualifying for next season's Champions League.

He also won the German Cup in 2021 when he was briefly appointed as interim coach.

"Borussia Dortmund and coach Edin Terzic are going their separate ways. The 41-year-old asked BVB to terminate his contract immediately. Borussia Dortmund agreed to the request after a joint discussion," the club said in a statement.

Terzic had also worked as a scout and assistant coach for Dortmund.

"Dear Borussians, even though it hurts me brutally right now, I would like to let you know that I will be leaving BVB as of today," Terzic said in a statement.

"It was a huge honour to lead this great club to a DFB Cup victory and, most recently, to a Champions League final."

The 41-year-old also nearly led Dortmund to the Bundesliga title in 2023, missing out on the title on the final day after failing to beat Mainz 05.

"After our final at Wembley, I asked those in charge for a chat because after ten years at BVB, five of them as part of the coaching team and two and a half as head coach, I feel that the upcoming new start should be accompanied by a new man on the touchline," Terzic said.