Schalke coach Fred Rutten will be leaving the German club at the end of the season at the latest.
Rutten told Germany's Bild newspaper's online edition that he was on the way out.
"Managing director Peter Peters came to me and told me that there was no future next season for Fred Rutten at Schalke," the coach said.
Schalke gave no details.
Rutten came to Schalke at the start of the season and has a contract for another season. He has been linked with a possible return to his native Netherlands to coach PSV Eindhoven.
Schalke finished last season in third place but has struggled under Rutten. The club is eighth in the Bundesliga, 12 points off the lead, and has been eliminated from all other competitions.
Schalke fired general manager Andreas Mueller less than three weeks ago and has been in talks with former Germany and Bayern Munich goalkeeper Oliver Kahn about the job.
Schalke's officials have indicated they intend to give the squad a comprehensive shake-up.