Berlin: Bayern Munich coach Louis van Gaal will leave the club at the end of the season, Bayern said on Monday.
Dutchman Van Gaal`s contract was due to expire in 2012 but the team have slipped to fifth in the Bundesliga and the two parties agreed in a meeting on Monday that he would depart at the end of the current campaign.
"Louis van Gaal remains head coach until the end of the season. The original contract ending in 2012 is terminated after both parties agreed to it," Bayern and the coach said in a joint statement.
"The reason for ending the contract (earlier) is the different views on the strategic positioning of the club."
The 59-year-old former Barcelona and Netherlands manager, who also coached Ajax Amsterdam to the Champions League title, took charge last season and steered the Bavarians to a domestic league and cup double and the Champions League final which they lost to Inter Milan.
Bayern have failed to replicate that form domestically this season. They are 19 points behind runaway leaders Borussia Dortmund and lost to Schalke 04 in the semi-finals of the German Cup last week.
Bayern are still in the Champions League, facing holders Inter Milan in Munich next week for the second leg of their last 16 tie. Bayern won the first leg 1-0.