Schalke sacked coach Jens Keller to appoint former Chelsea manager Roberto di Matteo, the German football club confirmed in a statement Tuesday.
Schalke have released with immediate effect Keller as well as assistant Peter Hermann and goalkeeper coach Holger Gehrke after poor performances, reports Xinhua.
Di Matteo, who guided the England club to their first Champions League title triumph in 2012, agreed to be their new coach in a deal till June 2017. He was out of a managerial job since his dismissal by Chelsea in November 2012.
"We are firmly convinced that Roberto di Matteo can stabilise the team and manage to achieve our goals in Bundesliga and Champions League," the club's sporting manager Horst Heldt said.
Keller took the helm in December 2012 but just two victories out of 10 games forced his dismissal.
Schalke has slumped to 11th place in the Bundesliga standings, crashing out of the German Cup at the first round and are winless after two games in their Champions League group.
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"We lacked in consistency to achieve our sportive goals. Therefore we decided to take this action," Heldt said.
The dismissal of Keller comes as a surprise to many as Heldt got behind Keller following the 1-2 loss to Hoffenheim Saturday in the German league.