Borussia Dortmund have confirmed head coach Lucien Favre has been sacked following Saturday's 5-1 loss to Stuttgart. 

The Bundesliga club announced the decision less than 24 hours after a humiliating home defeat that left them sitting outside the top four in the table. 

Favre branded the result a "disaster" in a post-match interview, having seen his side slump to a third straight league defeat at Signal Iduna Park. 

Edin Terzic takes charge until the end of the campaign, starting with Tuesday’s trip to Werder Bremen, as Dortmund search for a new permanent head coach.

Hans-Joachim Watzke, chairman of Dortmund’s management board, said in a statement: "We are all grateful to Lucien Favre for his excellent work over the past two and a half years, in which he and his team finished runner-up twice.

"As a professional and as a person, Lucien Favre is beyond any doubt."

Favre was appointed in May 2018, the former Hertha Berlin and Borussia Monchengladbach boss returning to Germany after a spell in France with Nice. 

The Swiss coach, initially appointed on a two-year deal before signing a 12-month extension in June 2019, enjoyed a stunning start, going 15 league games unbeaten to open the 2018-19 season. 

However, Dortmund would end up missing out on the title, finishing two points behind champions Bayern Munich. It was the same story again the following campaign too, albeit with the gap between the teams increasing. 

There was hope BVB may be able to end Bayern's domestic dominance when they started the new season with six wins in their opening eight games, but results have dipped of late.

Favre had secured qualification for the last-16 stage of the Champions League, but the Stuttgart hammering - one that emphatically halted a 13-game unbeaten home run against promoted teams - proved to be the last game of his tenure.