Lucien Favre has been sacked as boss of Borussia Dortmund, the Bundesliga club announced on Sunday.

Dortmund suffered a humiliating 5-1 defeat to Stuttgart on Saturday afternoon and time is up for their Swiss manager with Dortmund sitting fifth in the standings and five points off league leaders Bayern Munich.

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Bild and Fabrizio Romano reported first that Favre had been dismissed and will be replaced by Edin Terzic, the former assistant to West Brom boss Slaven Bilic, until the end of the season.

Favre is leaving Dortmund after two-and-a-half years with a win percentage of 62% and the club in the Champions League knockout stages.

"We are all grateful to Lucien Favre for his excellent work over the past 2-1/2 years, in which he and his team won two runner-up championships. As a professional and as a person, Lucien Favre is beyond any doubt," Dortmund chairman Hans-Joachim Watzke said in a statement.

Favre has led Dortmund to back-to-back second-place league finishes during his tenure.

OUR VIEW: HARSH DECISION

Dortmund are five points off table-toppers Bayern after eleven matches which, in all honesty, does not seem far removed from how they normally begin a Bundesliga season.

The expectation for them to overcome Bayern and win the Bundesliga title this season is not really there, so the decision to sack Favre after three consecutive home defeats seems a tad rash considering they are through to the Champions League knockout stages and we have not even reached the winter break.

Naturally you would assume they are looking to replace Favre with a more prestigious manager, but his assistant taking over until the end of the season is mystifying. Nevertheless, it is a great opportunity for the Bosnian Terzic to make a name for himself before the board start looking at a Mauricio Pochettino type as a long-term successor.

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