Bayern Munich have confirmed under-fire coach Louis van Gaal will leave the club at the end of the season.
The Dutchman's position has been under scrutiny following the weekend loss at Hannover which followed on closely from defeats in the Bundesliga to Borussia Dortmund and in the DFB-Pokal semi-finals to Schalke.
And although he will remain in the short-term, Van Gaal's current deal which is due to end next summer will be dissolved 12 months early with Bayern citing a "difference in opinion about the strategic direction of the club".
The club's board met with Van Gaal on Monday morning and they appear to have come to a mutual decision to go their separate ways at the end of the 2010/11 campaign.
Bayern's statement ends almost 48 hours of speculation regarding Van Gaal's position.
Initially it had been thought he would be sacked on Sunday only for reports to emerge in Germany stating the club had had a change of heart due to a lack of suitable replacements.
The decision to maintain their relationship for the time being will enable Van Gaal to guide the club through the remainder of their Champions League campaign.
Bayern won the first leg of their last-16 clash with Inter Milan 1-0 with the teams meeting again at the Allianz Arena on March 15.
The tie is a repeat of last season's final which Inter won 2-0.