FRANKFURT, Germany -- Juergen Klinsmann, who coached Germany to a third-place finish at the World Cup, stepped down Wednesday and was replaced by his assistant, Joachim Loew.
Klinsmann told reporters he was leaving to spend more time with his California-based family.
Loew, 46, had worked with Klinsmann during his two-year coaching stint.
"He was never an assistant; he was a partner, who had his own areas of responsibility," Klinsmann said.
German soccer federation co-president Gerhard Mayer-Vorfelder thanked Klinsmann for a "wonderful time" and said "your performance was incredible."
Loew's two-year deal runs to the end of the 2008 European Championship in Switzerland and Austria.
Klinsmann's rejuvenated team went beyond expectations by finishing third, after losing to eventual champion Italy 2-0 in the semifinals.
Klinsmann, 41, had no previous coaching experience when he took over an ailing German squad two years ago.
After Germany beat Portugal 3-1 to take third place, Klinsmann said he would think about his future over the next few days and consult with his family.