The 50-year-old replaced Julian Nagelsmann at the German champions in March 2023 on a deal until June 2025.
The former Chelsea boss will depart a year earlier than planned as part of “a sporting realignment” at Bayern.
He led Bayern to last season’s Bundesliga title after taking over in the spring but they now sit eight points behind leaders Bayer Leverkusen after back-to-back league defeats.
One of those was an emphatic 3-0 loss to Leverkusen- and they were also beaten 1-0 by Lazio in the first leg of their Champions League last-16 tie.
In a statement, Bayern confirmed manager Thomas Tuchel will leave at the end of the season following an “amicable conversation” between the boss and CEO Jan-Christian Dreesen.
Tuchel will depart with a year left on his contract.
Dreeson said: “In an open, good conversation we came to the decision to mutually end our collaboration in the summer. Our goal is to carry out a sporting realignment with a new coach for the 2024/25 season
“Until then, every individual in the club is expressly challenged to achieve the maximum possible in the Champions League and the Bundesliga. I also explicitly hold the team responsible. Especially in the Champions League, we are convinced that after the 0-1 defeat in the first leg at Lazio Rome, we will advance to the quarter-finals in the second leg in our fully occupied Allianz Arena with our fans behind us.”
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