Terzic said he asked the club leadership for a meeting after Dortmund’s Champions League final loss at Wembley to hand in his resignation.
“After 10 years at BVB, including five years on the coaching team and two and a half years as head coach, I feel that the upcoming new start should be accompanied by a new man on the sidelines.”
Dortmund accepted Terzic’s resignation, with club leadership meeting on Thursday to discuss future plans.
CEO Hans-Joachim Watzke thanking the coach for his “outstanding work”, saying “we all owe him a debt of gratitude.”
“Edin and I will always be friends.”
Dortmund sporting director Sebastian Kehl said the club’s “successes of the past few years will be linked to (Terzic)”, saying the coach “will follow his own path.”
German media reported on Thursday that former Dortmund player and current assistant coach Nuri Sahin will take over as manager ahead of the coming season.
Sahin, who was brought in as one of two assistant coaches to Terzic in January having previously managed Antalyaspor in the Turkish Super Lig, came through Dortmund’s junior system and played 274 times for the club.
The 35-year-old Sahin won one Bundesliga title and a German Cup at Dortmund, having also played for Real Madrid and Liverpool.
Shock exit
Terzic’s exit comes as a shock as he was widely expected to lead the club again next year after a run to the Champions League final.
He had previously served as an assistant for West Ham and Beskitas but his next step is unclear.
Born on the outskirts of Dortmund, the childhood BVB fan had joined the club as a junior coach and then a scout after a playing career in the lower divisions.
As interim manager, Terzic took Dortmund to a German Cup win in 2021 just a few months after taking over.
In 2022-23, his first full season, he had Dortmund on course for the Bundesliga title until a last-day 2-2 draw with Mainz saw Bayern win for the 11th straight season.
At the end of his second campaign, Terzic had Dortmund in the Champions League final — something that only Jurgen Klopp and Ottmar Hitzfeld had done before.
Dortmund ultimately lost to Real Madrid 2-0 at Wembley despite outclassing the Spanish giants for much of the match.
Despite their excellent run in Europe, Terzic and Dortmund were criticised for a poor domestic season.
Dortmund’s Champions League success was in stark contrast to their performances in the Bundesliga, where they finished fifth — 27 points behind Xabi Alonso’s Bayer Leverkusen.
Dortmund were eliminated at the last 16 by Stuttgart in the German Cup.
© Agence France-Presse
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