Terzic's position was very much secure with the manager winning them the German Cup in 2021 and getting them to the Champions League final in the season just gone, where they only narrowly lost to Real Madrid.
However, he has decided to step down from his role, having his offer of resignation accepted after a discussion with the club.
"Even though it really hurts, I want to inform you that I will leave BVB today. It was a huge honour to lead this club to a DFB Cup final and recently a Champions League final," Terzic said.
"After our final at Wembley, I asked the club bosses for a talk, because I've been at BVB for over 10 years now, with five as a coach and two-and-a-half as head coach, and I have the feeling that our new beginning should also come with someone new on the touchline.
"After intense discussions, my feeling hasn't changed. I wish Borussia Dortmund all the best. It's not goodbye, but till next time."
