Bayern Munich fires head coach Carlo Ancelotti
The club announced on Thursday that Ancelotti, 58, would be leaving the position he has held since the start of last season.
The Italian guided the club to the German Bundesliga title in his first season in charge, although they crashed out of the Champions League after suffering defeat at the hands of Real Madrid at the quarter-final stage.
The team has made a sluggish start to the current season, and Bayern suffered defeat against PSG's expensivley-assembled line-up on Wednesday, thanks to goals from Dani Alves, Edison Cavani and Neymar.
That defeat appears to have prompted the Bayern board's decision, and chief executive Karl-Heinz Rummenigge referenced the team’s poor form - which also sees them lie in third place in the Bundesliga - when announcing the decision.
"The performance of our team since the start of the season did not meet the expectations we put to them," Rummenigge said.
"I would like to thank Carlo for his cooperation. Carlo is my friend and will remain my friend, but we had to make a professional decision. The game in Paris clearly showed that we had to draw consequences."
Bayern assistant manager Willy Sagnol will take temporary charge of the team as it searches for a permanent appointment.
Ancelotti is one of the most respected managers in modern football, having won the Champions League three times – twice with Milan, in 2003 and 2007, and while in charge of Madrid in 2014. He has also managed English club Chelsea, who he guided to the Premier League title in 2010.