Jurgen Klinsmann has decided not to continue as Germany coach.
"I regret his decision, but we have to accept it," said Gerhard Mayer-Vorfelder, co-president of the German Football Federation.
Assistant coach Joachim Loew is likely to replace Klinsmann.
Klinsmann, who lives in California, had been urged to continue as coach after steering Germany to third place in the recent World Cup.
All 23 players of the German World Cup squad, 93% of the public, according to opinion polls, and even some of his harshest critics have all said they wanted him to continue.
Germany have a friendly against Sweden on 16 August before their 2008 European Championships qualifying campaign starts in September.
Klinsmann, whose contract expired on Sunday, has dismissed reports he received a lucrative offer to coach the United States and has said he has no interest in coaching another national team such as England or Italy.
After Germany's semi-final defeat against Italy in Dortmund, Klinsmann said he wanted to talk to his wife before deciding whether to lead his country's attempt to qualify for Euro 2008.
Germany finished third at the World Cup after beating Portugal 3-1 in Stuttgart on Saturday.
"I regret his decision, but we have to accept it," said Gerhard Mayer-Vorfelder, co-president of the German Football Federation.
Assistant coach Joachim Loew is likely to replace Klinsmann.
Klinsmann, who lives in California, had been urged to continue as coach after steering Germany to third place in the recent World Cup.
All 23 players of the German World Cup squad, 93% of the public, according to opinion polls, and even some of his harshest critics have all said they wanted him to continue.
Germany have a friendly against Sweden on 16 August before their 2008 European Championships qualifying campaign starts in September.
Klinsmann, whose contract expired on Sunday, has dismissed reports he received a lucrative offer to coach the United States and has said he has no interest in coaching another national team such as England or Italy.
After Germany's semi-final defeat against Italy in Dortmund, Klinsmann said he wanted to talk to his wife before deciding whether to lead his country's attempt to qualify for Euro 2008.
Germany finished third at the World Cup after beating Portugal 3-1 in Stuttgart on Saturday.