Magath to leave Wolfsburg in summer
It has been widely reported in the German media that Magath will move to troubled Bundesliga side Schalke 04.
Bundesliga leaders Wolfsburg announced Magath's departure in a statement on its website.
"We clearly exceeded the goals that we set for ourselves when I came to the club in the summer of 2007," Magath said in the Wolfsburg statement.
Magath has enjoyed unexpected success with Wolfsburg this season, leading the outsiders to the top of the table, three points ahead of second placed champions Bayern Munich with four matches left.
Pre-season favourites Schalke fired coach Fred Rutten and manager Andreas Mueller in March after a disappointing run in all domestic and international competitions.
Schalke are currently in seventh place and are all but out of contention for a European berth.