Bayern Munich said on Wednesday they would part ways with coach Thomas Tuchel at the end of the season, as the reigning German champions struggled to stay in the Bundesliga title race.

"We came to the decision to end our working relationship by mutual agreement in the summer," Bayern CEO Jan-Christian Dreesen said in a statement, following talks with Tuchel.

The coach, whose contract was set to run through to 2025, would exit the club on June 30 this year.

"Until then, I will of course continue to do everything I can with my coaching staff to achieve maximum success," Tuchel said in the statement.

Bayern would look for a "new footballing direction" under a different coach next season, CEO Dreesen said.

Tuchel's preemptive dismissal comes after three straight defeats, including a painful 3-0 loss to league rivals Bayer Leverkusen.

With 12 games left in the season, Bayern sit eight points behind Xabi Alonso's side, who have yet to lose during the campaign.

Leverkusen are on an historic 32-game unbeaten streak in all competitions, equalling a record set by Hansi Flick's Bayern across the 2019-20 and 2020-21 seasons.

Bayern subsequently slipped to a 1-0 defeat against Italian side Lazio in the Champions League round of 16 and a humiliating 3-2 loss to lowly Bochum in the league. (AFP)