Schalke Fire Coach

The 46-year-old Rutten was informed of the decision after a crisis meeting with supervisory board Chairman Josef Schnusenberg, which the club described as "very practical and also at times emotional."

Rutten's backroom coaching team of Mike Bueskens, Youri Mulder and Oliver Reck will take control of the first team until a successor has been found.

Former players Bueskens and Mulder had been caretaker coaches last season after the dismissal of Mirko Slomka.

Rutten joined Schalke at the beginning of the season on a contract until 2010, but the team has never looked capable of mounting a Bundesliga title challenge.

Following Sunday's 2-1 home defeat by SV Hamburg, Schalke are lying eighth, 12 points behind leaders Hertha Berlin.

Schalke also fell at the qualifying stages of the Champions League, failed to make it out of the group stages of the UEFA Cup and were knocked out in the quarter-finals of the German Cup.

Before his removal from the post, Rutten denied he was in talks with PSV Eindhoven and said he was continuing to focus on his job at Schalke.

"I still have a lot of fun working here," he said.

Turmoil at the top

Schalke are currently looking for a general manager after dismissing Andreas Mueller earlier this month.

Former coach Huub Stevens on Wednesday ruled himself out as a candidate to succeed Mueller as general manager.

Former Bayern Munich goalkeeper Oliver Kahn has been interviewed about the job but has made no decision.