Terzic aged 41, leaves after an alleged bust-up with centre back and club icon Mats Hummels.
Just days before the final at Wembley, the veteran centre-back criticised the manager’s tactics against other top teams in an interview.
Hummels said that he was furious with how Dortmund played and that should be the case against any given opponent. He also stated that he felt insulted in the beloved Dortmund kit to play like that. He mentioned both games against Stuttgart and the away game against Leverkusen as examples of his reason.
These comments infuriated Terzic who had a bust up turned violent. However they made up just before the Champions League Final against Real Madrid in which they lost 2-0.
The board of Borussia Dortmund was considering punishing both of them until Terzic handed in his resignation.
