Hamburg general manager Frank Arnesen has left the club by mutual consent, the club has confirmed.
The former Chelsea man Arnesen's transfer policy came in for criticism directly after his appointment in 2011, when a number of fringe players following the Dane from Stamford Bridge to the Bundesliga.
Ever since, Arnesen's performance has been heavily scrutinised with the club's failure to qualify for the Europa League this season sealing his fate.
That was despite being substantially backed in the transfer market that included the €13 million signing of Tottenham midfielder Rafael van der Vaart. The total transfer expenses added up to some €27 million, with only some €7 million generated on the income side.
A club statement explained the parting of ways was due to a "difference in opinions concerning the long-term direction of the club".
The statement continued: "This season's performance is an indicator of his successful time here. We would like to wish him all the best for the future both personally and professionally."
Hamburg are set to announce a record loss for the 2012-13 season and now appear to be hoping to turn around their fate with a new general director.
Former Wolfsburg coach Felix Magath has emerged as the favourite to succeed Arnesen. As a player Magath lifted the European Cup in 1983, scoring the only goal in the final against Juventus.
In 1986 he started his second career as general manager of Hamburg and in 1995 began a highly successful stint as a coach which saw him win the Bundesliga title with Bayern Munich and Wolfsburg.