FRANKFURT, Germany - Juergen Klinsmann, who coached Germany to a third-place finish at the World Cup last week, is stepping down, the co-president of the German soccer federation said early Wednesday.

Germany's national soccer team head coach Juergen Klinsmann celebrates with fans at the 'Fan Mile' in Berlin on Sunday July 9, 2006.Thousands of German soccer fans celebrate their team after Germany beat Portugal 3-1 at the third place match of the soccer World Cup on Saturday. Shirt reads:'Thank you Germany.' [AP]

"I regret his decision, but we have to accept it," Gerhard Mayer-Vorfelder said.

The mass-circulation Bild newspaper and the Sueddeutsche Zeitung first reported in their Wednesday editions that Klinsmann wouldn't extend his contract that ended with the World Cup.

Klinsmann called German soccer federation (DFB) co-president Theo Zwanziger and national team manager Oliver Bierhoff to tell them that he would not be staying in the job, the papers reported.

DFB spokesman Harald Stenger confirmed that Klinsmann had called Zwanziger and Bierhoff but would not disclose the details of the conversation.

The two newspapers said Klinsmann's assistant Joachim Loew was the likely successor.

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 California-based family.